My wife and I would like to house hack a Quadplex / Triplex in the Boston area. We look forward to starting our REI journey together, generate passive income, and begin to set ourselves up for the future. We understand that it is very much a sellers market right now. We have put in a handful of offers on places. We have gone to the extent of offering 100k over asking, waiving our home inspection contingency, increasing our earnest deposit to 20k, using an escalation clause in our offer, and writing a letter to the sellers. Unfortunately none of these techniques have worked thus far. Seems like we continue to get beat out by cash offers. We are looking for advice / guidance on anything else that we could possibly do to make a more appealing offer and help us secure our 1st property together. Thank you.
@Poe George is going through it too. All the markets around there are hot right now and everyone wants to house hack. You are making the right moves, but it just might take time and maybe a property that needs more work to get it done. You could start doing some off-market, first-time investor letters as a side to using your agent.
Have you explored some off market or coming soon inventory? That would help reduce competition as less eyes are on it. Additionally you speak with your lender on getting some underwriting done to better secure your financing. Unfortunately the letters no longer give the edge it once did and are so common they don’t get reviewed most of the time.
Keep on at it, nothing good comes easy :)
@Lien Vuong What is the best way to see off market / coming soon inventory? I definitely plan on speaking to my lender to see what we can do in terms of underwriting. We will continue the search and not get discouraged. Thank you for your reply!
Your agent has access to inventory that is Coming Soon onto the market, we have groups and platforms that’s agent only. Other off markets would be relationships based in his or her network.
@Kenneth Graves One other thing I see people doing is waiving an appraisal. I just want to check on something first before I suggest anything else.
Are you making sure that by offering over 100K over asking makes your ability to house hack and cash flow still possible?
I think its important to get started, but you don't want to get started on a bad foot, which can be costly.
@Antonio Cucciniello yes I have heard about appraisal gap coverage and looked into it briefly, As for the offer, we definitely go through the numbers to make sure the property is going to have a positive cash flow. You make a really good point, it is important to get started but even more important not to get started on a bad foot. From everything that I have read, the numbers have to make sense!