Buying in an extremely hot market

[John Hamilton]

I am looking for a property to get in on a house hack. I live in Colorado Springs and the market is insane here right now. Within a few hours of the listing being active it will have multiple offers and usually ends up selling for about 30k over market value with how competitive it is. What do you guys think about buying in a market like this for a house hack? Or should I wait/search in the surrounding area that is less competitive but may not be as easy to find renters?

[Lynn Currie]

@John Hamilton talk to some local folks about why they buy and what they buy. Maybe the strategy is an appreciation play, not a passive income play. Also remember we're in a weird time in the housing market and understanding how that's affecting Colorado Springs could be very important. For example, are you seeing Covid related bumps and are the multiple offers related to the current hot housing market? Are there multiple offers because it's the summer selling season and traditionally the market slows down and house prices drop X percent once that's past?

Normally I would say find some active local meetups, but most of those probably aren't being run right now so I would say find some local FB groups where people are talking about your area.

Overall though, go by the numbers. Figure out what makes sense for each property and stick with it. Don't make emotional decisions just because the market is hot UNLESS it works for you in your specific house hacking situation and you're okay with that.