Rental Property Investor · Sacramento, CA · Member since 2018 · 2 posts · 0 votes
I am on the journey to buying a duplex to House-Hack in Sacramento, CA. I currently have a very promising lead on an off market deal. If all goes well, then soon I will be negotiating with the seller on a price. The property details are:
- Duplex in 95677 Zip Code
- 3bed/2bath each side
- Not a fixer upper, but not a gem either
I am looking for advice and guidance on: how to analyze & figure out what my max price will be, negotiation tactics for off market deals, ANY and ALL other advice for off market deals or house hacking!!
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
5y
Never Split the Difference by Chris Voss is generally considered one of the best negotiation books out there, either in or out of real estate. BP also has a fantastic negotiation book written by two accomplished investors, specifically about negotiating real estate deals.
I think the biggest thing, once you've set your max price and buying criteria, is not to do a deal just for the sake of doing a deal. There are always more deals out there. Don't overpay just to buy something! Have an abundance mentality. There are always more deals out there.
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
5y
Never Split the Difference by Chris Voss is generally considered one of the best negotiation books out there, either in or out of real estate. BP also has a fantastic negotiation book written by two accomplished investors, specifically about negotiating real estate deals.
I think the biggest thing, once you've set your max price and buying criteria, is not to do a deal just for the sake of doing a deal. There are always more deals out there. Don't overpay just to buy something! Have an abundance mentality. There are always more deals out there.
Property Manager · California Washington North Carolina South Carolina, Georgia and Alabama · Member since 2020 · 71 posts · 27 votes
5y
Hello John,
I would be happy to discuss the property and can put together a market rent analysis for you. This will assist you with understanding the ability for the income potential and cash flow.
I have made my own analyzer/calculator geared towards house hacking. I could go over some of the other related information too. Let me know if you're interested.
Investor · Sacramento, CA · Member since 2016 · 96 posts · 41 votes
5y
Since you are planning to house-hack, I would recommend you figure out what is affordable for you in terms of monthly expenses. You're going to have income from the other unit (and maybe your unit if you are renting out rooms). How does that compare with your estimated loan payment, property taxes, insurance, utilities, etc. You are also going to want some margin in case you have a vacancy. But you can use those numbers to come up with a max offer. Then start your negotiations below that.