house hacking and upgrade

[Julien Teoulet]

Hello BiggerPockets community. 

First of all, thanks for the forum and all the free reading and experiences you guys share. Very appreciated ! 

I am looking for advices or ideas in regards to my situation. 

I am currently owning a 3bd/2ba, in a B, maybe B+ neighborhood; conventional loan at 2.75% for 15 year (12 more to go). Having a family of 5, we are planning on refinancing, cashing out, renting the 3bd and buying a 4bd + office. Well, it was the plan until mortgage start skyrocketing! 

Now plan A is to wait that supply increase, rates go back down and follow initial plan, as our 2 little ones can share a bedroom (which is also my office when working from home). But plan B is to look for any opportunity and learning some creative learning strategy to buy the 4bd, without touching my actual loan (I can cash flow 400-500$ with my current mortgage) .

I have 3 houses under my radar, more than 60 days on the market with price drops. With current 7ish % rate, the monthly payment is too much for us; and putting 20% down is not possible without refinancing my current loan.

What would be a great approach to get a deal on these leads? Again... very knew to the game, so options are just theoretical for me right now ! 

Does it look crazy to approach these owners and ask if they would be interested in financing my loan - BUT - at a 4.5% or 5% rate ??? (I ran a mortgage amortization simulation, if vendor is not looking for a lump sum, they can still get a nice monthly profit).  

Thanks all !

Julien