Big news this week: for the first time since May 2023, the typical home sold for less than a year earlier. Redfin says the typical U.S. sale price was $388,634 in October, down 0.4%. Even better for buyers, a record 36% of homes that sold had a price cut, and 61% sold below their original list price. So let's run a real example (numbers are an example, not a loan quote): 🏠 $390,000 duplex, FHA loan with 3.5% down ($13,650) 📈 6.89% rate (Mortgage News Daily FHA average, Nov 10) 💵 Full monthly payment, including taxes, insurance, and FHA mortgage insurance: about $3,292 🔑 Rent the other side for $1,600 (set aside 5% for empty months): you cover about $1,772 a month to live there Now the part most people skip: negotiating. On this example, getting $20,000 off the price saves about $129 a month. That's about the same as getting a rate half a point lower. You can't control rates (inflation came in hot this week and rates jumped back to 7.30%), but you can control your offer. Three things to ask for right now: 1. A price below asking, especially if the home has sat on the market or had a price cut. 2. Seller credits toward your closing costs. 3. A seller-paid rate buydown (the seller pays to lower your rate). Lenders are reporting that most of their buyers are getting at least $10,000 in seller concessions. What's the biggest concession you've ever asked a seller for? Drop it below 👇 — Coach Joe

New data out this week: the typical first-time home buyer in America is now 40 years old. That ties the all-time record (National Association of Realtors, 2026 Profile of Home Buyers and Sellers). And here's what got me: a record 10% of first-time buyers paid all cash, and 28% of those cash buyers used an inheritance. Lots of people are waiting on family money or 15 years of savings to buy a home. You don't have to wait. The typical first-time buyer put 9% down. On a $400,000 example home, that's $36,000. With an FHA loan on a duplex, triplex, or fourplex, you can put down as little as 3.5%, about $14,000 on that same $400,000 example, as long as you live in one of the units. Then the rent from the other units helps cover your payment. The basics: 1. You have to live there. Move in within 60 days and stay at least a year. 2. 3.5% down needs a credit score of 580 or higher (500 to 579 needs 10% down). 3. Rent from the other units can help you qualify. Ask your lender how much they'll count. 4. Three and four unit buildings have to pass FHA's rent test, so run those numbers early. (This is example math, not lending advice. Get the details from your lender.) That's the whole point of house hacking: buy sooner, with less cash, and let the building help pay for itself. What's holding you back right now: the down payment, your credit score, or finding the right property? — Coach Joe

October was rough for the for-sale market, and that is useful information if you are hunting a duplex, triplex, or fourplex. Zillow's new October report says newly pending home sales fell 16.8% from a year ago. That is the biggest yearly drop since August 2023, and the slowest October for contracts since 2018. Existing-home sales fell about 8.7%. The typical mortgage payment jumped to about $2,004 (20% down, before taxes and insurance), up 12.8% from a year ago. At the same time: - Freddie Mac's 30-year rate averaged 7.18% this week, the third straight weekly drop (it was 7.24% last week and about 7.40% in mid-October). - Redfin says the median sale price fell for a third straight week, to about $388,604. - Typical U.S. rent is up 2.9% from a year ago. Rents are firming while buyers pause. So the for-sale side is soft, rates are easing off the peak, and rental income is still climbing. That is a classic house-hacking setup, if you run the numbers at today's rate and negotiate like a buyer who has options. This weekend's play: 1. Shop listings that have sat 45+ days. 2. Ask for a price cut or seller credits toward closing costs / a rate buydown (Federal Housing Administration loans often allow meaningful interested-party credits). 3. Price your rental units at today's comparable rents, not last year's. Do not wait for the "perfect" rate. Wait for a deal that works at the rate you can actually get. What's the biggest lever you're using right now — price, credits, or rent? — Coach Joe

Happy Wednesday, team! It's deal math day. This morning Realtor.com reported that the typical U.S. list price is $415,000, so let's use that price for an example duplex with an FHA loan (3.5% down) at 6.95%, Tuesday's FHA average from Mortgage News Daily. • Down payment: $14,525 • Full monthly payment (principal, interest, taxes, insurance, and FHA mortgage insurance): $3,481 • Rent from the other unit: $1,600, or $1,520 after setting aside 5% for empty months • Your net housing cost: about $1,961 a month Compare that with what you pay in rent right now. In many areas, $1,961 is close to the rent on a nice one-bedroom, and with the duplex you're building equity instead of paying your landlord's mortgage. Here's why now is interesting. Homes for sale are up 7.4% from a year ago, but homes under contract are down 10.5% (Realtor.com), and applications to buy a home are 19% below a year ago (Mortgage Bankers Association). Fewer buyers means more room to negotiate. Ask the seller to cover part of your closing costs or to buy down your rate. Every quarter point you shave off saves roughly $68 a month on this example. (Example only. It assumes $4,800 a year in taxes and $2,400 in insurance and doesn't include closing costs, repairs, or utilities. Plug in your own local numbers!) What rent would the second unit need to bring in for this deal to work for you? Drop your number below 👇 — Coach Joe