Ila Corcoran: A Journey of House Hacking and Wealth Building
At just 26 years old, Ila Corcoran has made a name for herself in the real estate world through her smart investment strategies and determination. As a house hacker, she has managed to build a significant portion of her wealth by living in one bedroom of her four-bedroom home in Texas while renting out the others. Her journey began when she realized that staying in California would make it nearly impossible to afford a home, prompting her to explore more affordable options in other states. In 2021, she took the plunge and purchased her first home in Forney, Texas, a suburb of Dallas, using an FHA loan. By 2024, she had already bought her second property in Tulsa, Oklahoma, using the rental income from her first home. Ila’s story is one of resilience, strategic planning, and the willingness to take risks to build a secure financial future.
Early Days in Real Estate and the Decision to Leave California
Ila’s interest in real estate began when she was just 18 years old. She earned her real estate license and later worked as a property manager at an apartment complex in Los Angeles. This role not only provided her with valuable insights into the industry but also allowed her to live rent-free, as her housing was covered by her employer. She used this opportunity to save money, which she eventually put toward a down payment for her first home. However, the high cost of living in California made it clear that she needed to look elsewhere to achieve her goal of homeownership. Ila decided to leave California and invest in a more affordable market, ultimately choosing Texas for its population growth, affordability, and high demand for rentals.
Purchasing Her First Home and Embracing House Hacking
In March 2021, Ila purchased her first home in Forney, Texas, for $250,000. She used an FHA loan, which required a down payment of just 3.5% and offered a favorable 2.8% interest rate on a 30-year mortgage. The home was a new construction, four-bedroom property, which she found through a real estate agent. Ila moved to Texas to comply with the FHA loan’s primary residence requirement and quickly began renting out the extra bedrooms. Over the past four years, she has earned a total of $110,000 in rental income, which has helped cover her monthly mortgage payments, property taxes, and HOA fees. House hacking, the practice of living in one part of a multi-bedroom property while renting out the others, has been instrumental in her ability to afford and maintain the home. She has had about seven different roommates since purchasing the property, and the rental income has provided a steady stream of cash flow that she has used to invest in additional properties.
The Challenges of Living with Roommates
While house hacking has been a financially savvy move for Ila, it hasn’t always been without its challenges. She has experienced her fair share of conflicts with roommates, including complaints about noise, lifestyle differences, and personal boundaries. To manage these issues, Ila has implemented a few key strategies. She screens all potential roommates carefully, using platforms like Roomster and Facebook groups to find reliable tenants. She also requires each roommate to sign an individual lease, which outlines the terms of their stay. Most leases are for six months to a year, after which they can transition to a month-to-month arrangement. Ila has also drawn on her experience as a property manager to draft comprehensive contracts and consult with local lawyers to ensure compliance with tenant laws. Despite the occasional disagreements, Ila’s patience and commitment to open communication have helped her maintain a harmonious living environment. She has even made room for a close friend, who is currently staying in the fourth bedroom rent-free while getting settled.
Expanding Her Portfolio with a Second Home in Tulsa
In January 2024, Ila took her real estate portfolio to the next level by purchasing a second home in Tulsa, Oklahoma. The two-bedroom, two-bathroom property cost $190,000, and she financed it through a seller-financed mortgage. This arrangement allowed her to avoid the lengthy documentation process of a traditional loan and secure a 10-year mortgage with a 6.5% interest rate. Ila chose Tulsa for its historical significance and potential for growth. The city’s rich history, including the legacy of Black Wall Street, and its reputation as an up-and-coming market, made it an attractive investment opportunity. The home is currently being rented out to a single tenant for $1,500 a month, generating a steady income stream that Ila plans to reinvest into her real estate business. While she has encountered some uncertainties, such as the exact property tax bill for the new home, Ila remains confident in her decision and the long-term benefits of her investment.
Reflections on Success and the Future
Looking back on her journey, Ila is proud of the risks she has taken and the financial independence she has achieved. When she first decided to buy her home in Texas, many people advised her to wait, citing concerns about high prices and market conditions. However, Ila recognized that there would never be a “perfect” time to invest and that delaying her decision would only cost her more in the long run. Her early success in real estate has allowed her to build a significant net worth, which she continues to grow through her rental properties and a fintech company she founded called BySengo. Ila’s story is not just one of personal achievement but also of addressing broader societal issues, such as the racial disparities in homeownership. As a Black woman, she feels a sense of pride in contributing to a more equitable future. While she still has personal goals, such as starting a family, Ila’s financial security has given her the confidence to pursue her aspirations without feeling pressured to prioritize traditional milestones. Her journey is a testament to the power of hard work, resilience, and strategic planning, inspiring others to take control of their financial futures.
