Real Estate Agent · Conroe, TX · Member since 2022 · 15 posts · 3 votes
Hello Everyone,
My wife and I are looking to purchase and house hack our first investment property. I spent a few months analyzing duplexes in the Conroe, Texas (North of Houston) area and was unsuccessful at finding duplexes that would cash flow given the current price points. I can't come close to the 1% or 2% rule and cash flow seems hard to come by.
I've recently been looking into the co-living (rent by the room) strategy on single family homes and am exploring scenarios where I could house hack and do that at the same time and am running into similar roadblocks for anything under 5 bedrooms. Anymore than 5 bedrooms and parking becomes a serious bottleneck.
Any suggestions? Is it worth purchasing a property to house hack that doesn't cash flow all that much and wait for inflation to increase my rents and equity?
Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
4y
@Parker Hardy. Does your underwriting show positive cash flow and free rent ? Or are you looking down the road once you move out ? If so, what annual increases are you expecting from move-in to move-out ?
Also everyone’s net CF has to show their down payment credit score terms etc.
Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
4y
@Parker Hardy Your market is very similar to mine where it is very difficult to cash flow or even to break even when house hacking a 2-4 unit unless if you are comfortable living in the not so great areas. If the property makes financial sense with the entire property rented out (when you move out), then it should be a solid investment opportunity. This means you would be living close to free or better in most cases.
Real Estate Agent · Member since 2020 · 23 posts · 19 votes
4y
My criteria down here in Houston is $200 per door. Most small multi-families can reach that (not the really new ones though). But I wouldn't expect anything to pay your entire living expense.
We are seeing between .5-.7 RTP here in Houston and I think Conroe is around .8 RTP. Check out Dave Meyer's cash map on this site.