How to house hack in a hot market?

[Nathan Nelsen]

After hours of researching and trying to decide how to get started in real estate I’ve came to the decision that house hacking is the first step I’m going to take.

The problem I’ve been running into is the lack of inventory in 2-4 unit properties or the sky high price tags on these units. I’m looking to stay around $225k or under.

I live in Metro Detroit (Oakland County) and it seems like the market is slowing down a tad compared to the last few years when prices were rising off the charts.

Doesn’t anyone have any recommendations on how to find off market properties or should I look outside this area?

If anyone has any experience in this market please share your thoughts and/or experiences.

Thank you,

Nathan

[James Carlson]

@Nathan Nelsen

You're experiencing what a lot of people here in Denver and Colorado Springs are feeling about small multi-units -- scarcity. 

I agree with some of the above. We see a lot of success with our house-hacking clients who do one of two things:

1. Find a home with a basement apartment, walk-out basement, etc. Some kind of space that can be separated off. Having a second kitchen is great, but if not, if you're in the right location, you can still Airbnb the heck out of it. 
2. Buy a 4br+ home and rent the other rooms separately. 

It's not as sexy as buying a duplex, but everyone's looking for a 2-4 unit in places like our market (and it sounds like in Detroit as well), so go where people aren't looking. The above options achieve the same goals.

Good luck!