Escalation clause with offer

[Kenneth Silva]

I'm looking to buy a rental property in the Boston area / north shore which is a very competitive market right now. It is definitely a sellers market and difficult to not get outbid on everything you offer on. I'm considering putting in an escalation clause with my offer on a property that's listed at $400,000. My escalation clause would go up to $430,000 in increments of $5000. Do you think adding an escalation clause is a good/bad idea. I'm concerned that it possibly could weaken the strength of my offer in a situation where there are several good offers. I feel that the property is underpriced and will easily go over asking. Would it make more sense to just bid 425-430 straight up?