Networking/Asking advice from investors in Springfield, MA area

[Yixue Zhao]

Hello everyone! First-time home buyer here, and I really need some help in this crazy market... 😂 I was so motivated to buy my first deal, but it's frustrating to be outbid by cash buyers... I'm so confused... The properties whose numbers don't work (in my analysis) still got sold very quickly. And there are so few listings! I think I'll need to make some compromises (like expanding the area I'm looking at), and I could really use some advice to help me close my first deal from someone in my area!

I live in Northampton (renting), MA. If there's anyone in this area, I'd love to meet up and get some advice from you! Meals on me :) The weather is getting so nice these days, sitting outdoor at Esselon Cafe (https://www.esselon.com/) would be wonderful. Open to other suggestions as well :) My time is generally super flexible (including weekdays), but I'll have to be out of town May 4-14 unfortunately. Any other time should work!

I'll also explain my situation below to get some advice in general. Thank you so much, everyone! I really appreciate the help from our wonderful community!

1. I locked in an interest rate at 3.625% but it will expire. I REALLY want to be able to use this rate, but I have to have purchase & sale by June 5 (so I actually have a deadline! lol)

2. The locked-in rate can only be applied to single-family. the loan amount is 500K (50K down). owner-occupied.

3. I want to buy 3-4 bedrooms and occupy 2 bedrooms, renting out the rest (2+ bath is ideal so we don't need to share the bath). I live with my husband (no kids) and MF is definitely better, but we have to buy SF in order to use the low rate

4. My husband and I go to the climbing gym in Hadley, MA very often, so we don't want to live too far from it. We're looking at Amherst/Hadley/Northampton, but these areas have very few options and get sold really quickly. I'm thinking of looking at other areas like South Hadley, Holyoke, Belchertown, and Eastampton. My lender can cover Hampton and Hampshire counties. But the crime rate is higher and the rent is lower in those other areas in general, and I'm not familiar with the sub-neighborhoods. Any advice on the fine-grained neighborhoods would be really appreciated!

5. I already have a realtor that I like and I just want to expand my network and get more advice! I'm not looking to switch realtors.

6. In a crazy market like this, do people sacrifice cash flow? I don't understand why so many overpriced properties are still getting sold quickly and people are paying over asking. In my analysis they have negative cash flow. I'm doing my analysis assuming all rooms will be rented out without me living in it. Maybe in a market like this, breakeven is already a good deal? We're still getting equity after all, and the money is cheap to borrow. So I think I'll also compromise cash flow a bit because my W2 income is strong and I won't starve... I plan to buy and hold, and house hack another one after living in the first one for a year. -- Where do you draw the line to compromise cash flow?

Would love to connect with more people in my area! It's always great to know new people and learn from each other :) I plan to do REI in a long term, and will likely move to Boston area next. I go to Boston very often, so I'd love to meet up there as well! For now, need to cram the deadline of my first deal! Wish me luck!