How to Find a House-Hack in a Competitive Market

Question

Hi All!I am a new real estate investor looking to start house-hacking. I have a down payment and mortgage pre-approval lined up, but am having trouble finding a deal. My real estate agent says that the market has a pretty low supply of multi-family properties right now. In my own browsing through Zillow and running the numbers through BiggerPocket's rental calculator, I haven't found anything that could cashflow. Any recommendations? What would you do in my situation?

Thanks!

Jaysen Medhurst · Answer

Doesn't hurt to make offers, @Jesse Haworth, as long as you're serious about following through should one be accepted. Can you share an example of a property that you're considering?

Also, don't forget to "@" people in the forums, so that they know when you've responded.

Jaysen Medhurst · Answer

Cash flow with you living there, @Jesse Haworth? In a HCOL area, that probably isn't possible. It may not even be possible after you move out, if the properties don't hit the 1% rule, you're highly leveraged, and the taxes are high.

That doesn't mean you shouldn't house hack. May be worth it if you can lower your living expenses, build equity, and get some land lording experience. Just don't expect that property to necessarily make a good investment after you move out.

Jesse Haworth · Answer

Ideally, we would want it to be a good cash flow property without us living there. But then we would "pay rent" to ourselves. I appreciate your recommendation! We could use it to lower our expenses while getting experience, even if it isn't the best deal. I just watched the "8 Steps to Buying Your First Rental Property" BiggerPockets video on Youtube. This made me think I should start putting out offers that work will my numbers (even if it is lower than their listing price) to see what sticks. Especially on properties that have been listed for a while. What do you think?