Tips For A Slow Market

[Landon Allen]

Hey everyone! I'm looking for some tips on how to acquire a small multifamily (1-4 units) in a slow market to house hack. I just recently got approved for a loan and have been working with my agent for about a month and a half now. Still no luck! I've been looking in the Greater Lansing area where there's only about 38 multifamilies on the MLS, when this time last year there were well over a 100. I understand patience is key here but I can't help feeling like I'm not doing enough. I was thinking of taking the whole drive for dollars approach but not really sure if I should be looking solely for distressed multifamily properties or just take my chances on every multifamily in my desired farm location. I've also been considering cold calling landlords who have their properties listed for rent on craigslist to see if they'd be interested in selling (I've been a little nervous to pull the trigger on this idea lol). Any thoughts or tips on the matter would be MUCH APPRECIATED! Thanks

[Will Fraser]

Hey @Landon Allen, if you are looking to house hack in the traditional sense (using a low downpayment loan to purchase it) then I would NOT look for things that need a lot of work.  Look for something basically move-in ready so that you can control and limit the amount of cash you have in the property.

With this in mind, I would recommend driving for dollars (physically) or clicking for dollars (virtually) with an eye to find vacant units in a 4plex.  If you can't find the 4plex for sale, then your next hottest lead would be owners of 4plexes that have at least 1 empty unit.  If they self manage then you'll be able to find a phone number for them pretty readily and then it's a simply conversation.