The big distinguishing factor between Rockwall proper and Royse City is school district.

Maybe there are things I don't know and haven't factored in.

I have been asked this question several times this week and after speaking to property managers, developers, investors, tourists, and realtors in the area, I have found several factors that combined have lowered the occupancy, especially during summer. 1.

It can be multiple factors. 

That can be the determining factor on if you have a good buyers agent. 

It's normally the desire for immediate income that steers most investors towards bad investments because they are hyper focused on cash flow which is often portrayed differently in spreadsheets than in real life, and should be a consideration but not deciding factor.

That is $19,200 annual profit so you would be -$3,200 in 1 year with no factoring of breakage and maintenance.

What other factors should I be considering?

However, when you factor in the HELOC, we have a negative / break-even cash flow (HELOC payments are about 25% of the revenue from both).

They're good to have open access to capital/cash/equity to a property ahead of time so you can execute a deal or purchase when the time comes on a split second decision (versus having to apply to a loan at that time which might take 20-45 days to get approved/closed/etc plus by that time you dont know what your future income/credit/assets will be like in order to qualify anyway).The second use is sleep at night factor and having a reserve of capital in the event an emergency event occurs in life.For these two reasons is why I use lines of credit.