Higher Priced House Hack

[Jeffrey DeAngelis]

Hey everybody,

I’ve house hacked once and am looking to get into my next one. I’ve been pre approved for a 10% down owner occupied loan and I’m interested in a house that’s been on the market for a few weeks. My problem here is, the house next door went on the market last week at $20k lower than the asking price of the one I’m interested in. This other house has a two car garage compared to a shed and mainly needs cosmetic changes/updates compared to the one I’m interested needed a new furnace, water heater and roof likely within the next two years. All the comps in the area show this place I’m interested in is overpriced by $20-35k. In a house hack, are you more comfortable buying higher on the front end to get in? The property will cash flow to my standard if it’s bought for about $10k less than asking price, but that’s still higher than other home values in the area. What do you think I should do?