There are plenty of ways to find a house hack. In some markets, investors need to be creative in order to get a deal or find houses due to limited inventory and competitive markets. The majority of home buyers simply just look at the MLS, however, there are other methods to do that will set you apart from all the other investors out there. The ones that are not actively using other methods to find houses are leaving possible deals on the table. No doubt, it will take a decent amount of work. The goal would be that the upfront work to find a deal off-market or on market would pay dividends in the long run.
List of Methods to Find a House Hack:
1. The MLS
The MLS or Multiple Listing Service is used by realtors for them to post houses on the market where mainly only realtors have access to. Also, all the other real estate sites like Zillow, Trulia, Movoto, Redfin get their data syndicated from the MLS. The Multiple listing service is essentially the portal to find all houses on the open housing market. Each region has its own MLS. These houses will be very competitive since these houses are the ones that have open houses and the vast market sees. Especially if you are looking at multifamily houses occasionally it is very low inventory.
2. Real Estate Auction Sites
Real estate auction sites are very rare to find stable non-risky properties on them. Most of the time it is site unseen offers to be made. Furthermore, a great deal of these houses is in need of serious repair, problem tenants, or other challenging situations. The most common auction site is auction.com. Here is a list of other auction sites to find potential primary resident investment properties on.
3. For Sale By Owner
For sale by owner properties, also known as FSBO, are hidden gems and a lot of times realtors gear buyers away from them since they might be getting a lower commission. Houses are usually put on the market by the owner since they want to avoid a lot of foot traffic in their home, keep the commission the seller’s realtor would be getting, and they are more hands-on types of individuals.
4. Calling on and Emailing Rental Listings
If you see rentals self-managed and self-listed, the landlord might be tired of the maintenance and not being able to fill the unit. A friendly email and/or call might be the trick to open up a dialogue with them to see if they are open to selling this property or other properties they own. If not, you are still might take the chance to network to see if they know anyone willing to sell their investment property too.
5. Networking Events
A great way to find new houses about to come on the market, talk to realtors, old investors and house hackers alike are at networking events. Even if the real estate event is a presentation style there will be a mix and mingle either at the beginning or end of the event to chat with other investors. Meetup and Eventbrite sites are great places to find events in your local area and virtual ones too.
6. Driving For Dollars
Ever drive around a neighborhood and you think there is no way a person lives there since the grass is overgrown, mail is piling up, and there is some deferred maintenance? Odds are you are right and it might be a great chance to contact the owner. You can find who the owner is on the tax records of the town. There are two main apps that are out there to help you find the contact information of the owners spcifically. One is Deal Machine and the other is Driving for Dollars.
7. Craigslist or Facebook marketplace
Sometimes when owners do not want everyone flocking to their property they might not put the house on the MLS or have a realtor sell their property. Therefore, they put the house to be listed only on craigslist or Facebook Marketplace since afterall it is free to have their house listed there. Since these sites are not monitored and user-generated, please be wary of scammers.
8. Direct Mail
Making a mailing list of a very narrowed down criteria of houses and doing a postal card mailer to them asking if they are open to selling their property for the right price is a great way to get some traction. Doing mailers might seem old fashion and no one might be doing it, however, that is what will set you apart from all the other investors hunting for the next deal. Even combining direct mail programs with driving for dollars could make a bigger impact doing a hyper custom tailored message on the mailer.
In Conclusion
There is more than meets the eye to get a house under contract. Most houses might be done live listings on the market, but some of the best deals could be acquired off market. A combination of multiple ones above can be used in unison to optimise your strategy to find a great house hack property. Remember it is not a get rich quick scheme, but a get rich over time plan to save a substantial amount of money along the way.
