All Forum Posts by: Corey Slaughter

Thank you @Richard Helppie-Schmieder! It was nerve racking going through the first purchase but I see how powerful it is now and am motivated to acquire my next deal.

Investment Info:

Single-family residence other investment in Rockwall.

Purchase price: $192,000
Cash invested: $25,000

This is a house that I am currently house hacking. I wanted to take advantage of the lower interest rates and get started with real estate investing.

What made you interested in investing in this type of deal?

I liked the idea of house hacking as a way to live in a house while furthering my financial position.

How did you find this deal and how did you negotiate it?

I used a real estate agent that set up automatic emails for my criteria.

How did you finance this deal?

I saved up money from my job to finance this deal.

How did you add value to the deal?

I have not added value yet but the kitchen and bathrooms are little outdated which was part of the reason I picked the house.

What was the outcome?

I have one out of 2 rooms currently rented. This puts me at only paying $500 a month for PITI which is better than my previous apartment even though the cash flow is negative. The third room is small and hard to rent (part of the lessons learned). This is something I will look into more in depth on my next deal (i.e. suitability for rent style. This house with a small third room could work well as a typical rental)

Lessons learned? Challenges?

This was tough because I really wanted to get into a deal without having to sign another lease or go month to month at my previous apartment. I definitely pushed this deal through because of this and didn't get the best deal. I am optimistic that the next deal I pursue will not have these other pressures and I will be free to make offers without need for purchasing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with an agent but her knowledge on house for investments and rentals did not seem to be the best.

Investment Info:

Single-family residence other investment in Rockwall.

Purchase price: $192,000
Cash invested: $25,000

This is a house that I am currently house hacking. I wanted to take advantage of the lower interest rates and get started with real estate investing.

Pros: Good location that balances work proximity with a good area with potential for natural appreciation. There is also some room for forced appreciation through kitchen and bathroom remodels.

Cons/lessons learned: It is a 3 bed 2 bath but the third is not very suitable for a third roommate (quite small ~ 80 sq ft). I have also learned to inform tenants upfront about plans to fill other rooms that will cause shared bathrooms. I was crunched when purchasing as my apartment lease was about to run out so I went for the best option but didn't get the best deal. Next time, I will make sure I have no true need to procure a deal so that I have better negotiating roots.

What made you interested in investing in this type of deal?

I liked the idea of house hacking as a way to live in a house while furthering my financial position.

How did you find this deal and how did you negotiate it?

I used a real estate agent that set up automatic emails for my criteria.

How did you finance this deal?

I saved up money from my job to finance this deal.

How did you add value to the deal?

I have not added value yet but the kitchen and bathrooms are little outdated which was part of the reason I picked the house.

What was the outcome?

I have one out of 2 rooms currently rented. This puts me at only paying $500 a month for PITI which is better than my previous apartment even though the cash flow is negative. The third room is small and hard to rent (part of the lessons learned). This is something I will look into more in depth on my next deal (i.e. suitability for rent style. This house with a small third room could work well as a typical rental)

Lessons learned? Challenges?

This was tough because I really wanted to get into a deal without having to sign another lease or go month to month at my previous apartment. I definitely pushed this deal through because of this and didn't get the best deal. I am optimistic that the next deal I pursue will not have these other pressures and I will be free to make offers without need for purchasing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with an agent but her knowledge on house for investments and rentals did not seem to be the best.

Thanks for the information again. These are both very helpful and gives me a good baseline for what I'm looking for in a house.

@Steve Sellers Thanks for the information! This is exactly what I was looking for. If I could, pick your brain a bit more, how much do you typically set aside for things like CapEx/Vacancy? Also, what do you think oh houses off of Horizon Rd near W Ralph Hall Pkwy? I have seen some in that area as well.

I know that in different areas you can expect different returns in cashflow and appreciation. I'm wondering if anyone has some baselines or targets that they shoot for in Royse City and Rockwall, TX. Any input about this is greatly appreciated!

Thanks for all of the help everyone! Sounds like the house size shouldn't be a concern as long as comps confirm rental price and the location suits it. I appreciate the all of the information.

Thanks for the advice, Ron. The area that I have found this rental in is Rockwall, Texas. Good to know that it's still feasible and can be used for other purposes.

I found a 3 bed 2 bath house rental property that seems nice but when I went to tour it, the master bedroom and bathroom are a good dize but the other 2 bedrooms are quite small with one being very small (~8ft by 12ft is my guess). How much of a concern is this in general? Is this just something to factor in by assuming I will not get as much rent for it?

Okay so it sounds like you have to be quite careful with extra supply coming in. Thanks again for the Info I have some homework I need to do about this area.