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.

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?

Hello and good morning bigger pockets fam, I am seeking guidance and thoughts into starting out in real estate.

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).

However, this wouldn’t typically happen directly because of the appraisal issues themselves, unless factors like low market rents or a lower-than-expected appraised value shifted your loan into a different pricing tier.