I Bought My First Home at 22 in New State Via House Hacking, FHA Loan

• Ila Corcoran lived in California but bought a four-bedroom home in Texas where prices were lower.
• She’s a house hacker, living in one bedroom while renting out the others to cover her monthly costs.
• In 2024, she bought a second property using the rental income she earned from her primary residence.

This as-told-to essay is based on a conversation with Ila Corcoran, 26, who purchased her first home in 2021 and used the income from renting out its rooms to help buy a second property in 2024. The interview has been edited for length and clarity.

When I was 18, I earned my real-estate license and later became a property manager at an apartment complex in Los Angeles. I lived in a one-bedroom, one-bathroom unit valued at $2,300 a month, but my rent was covered as part of my salaried role.

I used the money I saved by not paying rent to build up a down payment so I could invest in real estate. At 22, I started house hacking by buying properties and renting out rooms in them.

In March 2021, I bought my first home for $250,000 in Forney, Texas, a suburb of Dallas. I used a Federal Housing Administration mortgage, or FHA loan, because it made the purchase more affordable. I put 3.5% down on the home and secured a 2.8% interest rate on a 30-year fixed mortgage.

I eventually moved to Texas to live in the home — since FHA loans require the home to be your primary residence — and began renting out the extra rooms. I’ve earned a total of $110,000 in rental income over the past four years. However, I do have property taxes to pay and a homeowners association, or HOA, fee of about $400 a year.

In January 2024, I bought my second property. It’s a two-bedroom, two-bath, 1,300-square-foot home in Tulsa, Oklahoma.

I got it for $190,000 with a 10% down payment, a 6.5% interest rate, and a seller-financed 10-year mortgage. The HOA fees for this home are $250 per month, and I’m unsure of the exact property-tax bill since I’ve owned the home for just under a year. I rent out the entire house to a single tenant for $1,500 a month and have earned $25,000 so far before expenses.

I use the money I make from renters primarily to cover the mortgages and utilities for my homes. Any extra income goes toward building my fintech company, BySengo, which helps founders seeking funding connect with investors interested in private businesses across the beauty, fashion, wine, and hospitality industries.

In the long term, I’ll put the rental income profits into investing in more real estate.

I had to leave California to afford to buy a home

I decided to buy property outside Los Angeles because I knew I could more easily afford homeownership elsewhere.

Although I had never been to the Dallas area, I chose it for its population growth, emerging communities, and affordability. It also stood out because it had a high proportion of renters compared to homeowners, which made it seem like an easier market for renting out property.

I found my property through a real-estate agent. It was a new construction home that had yet to be built.

In October 2020, I flew to Dallas to visit the site. During the trip, I put down a $1,500 deposit to reserve the land. In March 2021, I closed on the home, bringing about $9,000 to the table.

I split my time between California and Texas, traveling back and forth from March 2021 until I officially moved in September 2024. It was difficult leaving my home state, but I realized this was what it took to build wealth, and I was ready to make it happen.

The home is two stories and has four bedrooms, which are all occupied. Over time, I’ve had about seven different roommates. At the moment, I’m charging $1,000 a month for the primary bedroom and $900 for the downstairs bedroom. I’m not charging rent for the fourth room, as my best friend, who recently moved from California, is staying with me while she gets settled. I’ve previously charged $750 for that room.

Living with roommates isn’t always smooth sailing

I found most of my roommates through the app Roomster, which helps people find rentable rooms or lease out their homes, and I have also used Facebook groups.

I screen all my roommates and have them sign individual leases. Most leases are for six months to a year, after which they can become month-to-month. My renters can stay as long as we both agree, but we need to give notice if either party wants to terminate early, with no fees involved.

For my contracts, I’ve drawn from my experience as a property manager in California and tenant law. I’ve also consulted with local lawyers who’ve reviewed my documents and given me recommendations.

Things aren’t always perfect with roommates. I’ve definitely faced my share of challenges. For example, one roommate might complain about another, saying things like, “I don’t like when they do this” or “It bothers me when they do that.” It’s definitely something I deal with on an ongoing basis.

Communication is key in situations like these. It’s all about establishing boundaries, talking things through, and letting people come to me privately to make sure everyone feels heard. I’m not easily angered, so having patience really helps.

I used a seller-financed mortgage to buy my second home

I chose to buy my second home in Tulsa because I learned about Black Wall Street and its historical significance in the city.

I also came across a YouTube video discussing up-and-coming cities. Because of its municipal bonds, government investment, and corporate interest, Tulsa was mentioned as a city on the rise.

There were many benefits to purchasing the home with seller financing. The process was similar to a traditional closing. The key difference is that I make my payments directly to the seller, who holds the lien, rather than a bank. If I fail to make my payments, the seller has the right to foreclose.

I chose this route because I am self-employed, which can make it harder to get a traditional mortgage. Seller financing allowed me to avoid the long documentation process and had fewer requirements. I was also able to put down less money and avoid private mortgage insurance.

The home seller benefited because they didn’t have to pay taxes on the entire lump sum from the sale at once. Instead, by receiving monthly payments, they spread out the income and pay taxes gradually. This lowers their tax liability each year, allowing them to keep more of the money.

I am proud of myself of investing in real estate so young

When I bought my first home, everyone told me not to do it. They said prices were too high, and I was overpaying. They suggested I wait until rates went up and the market cooled down. But I’m glad I didn’t listen.

There’s always going to be a “better deal” or a “better time,” but if you let that hold you back, your opportunity cost becomes even greater. All the time spent deliberating on the best possible outcome can prevent you from even starting and achieving anything.

I do think people should be cautious but also take the risk of investing in themselves.

I know real-estate investing isn’t for everyone, but as a Black woman, I feel like I’m helping to address some of the inequality in homeownership in America — particularly the disparity between Black landowners and non-landowners.

Investing in real estate and house hacking has also been incredibly beneficial for me. Without the equity from my real-estate investments, I wouldn’t have built much of a net worth — at least not as quickly.

I’ve had my family’s support, but I’ve done this financially on my own. Honestly, I feel great about it.

I still have goals of getting married, having a family, and becoming a wife and mother — goals women are often encouraged to prioritize. But by pursuing real estate on my own, I feel more confident about dating and marriage because I already have a strong foundation and feel established.