Should I start or take another year to prepare in an apt?

[Travis Collins]

I'm wanting to get into a multi-family house hack in 3-6 months. I'm currently not in my own place and would like to be on my own as soon as possible, an apartment is also an option.

I started a new job 3 months ago that increased my income to ~$80-90k/yr (sales, mostly base salary with some commision) and I do ride sharing on the side to get up to around $100k. Monthly expenses are low, just a car payment and cell phone bill. All debt is closed accounts so technically no monthly payment due to them.

If I go with the house hack:
Depending on the bureau, credit is currently around a 560-600. Debt is $15k in closed accounts, I'd be looking to pay off $5k of them to bump my credit to hopefully 620-630 by the time I were to actually purchase in the next 3-6 months. I'm OK with a higher interest rate in the short term, I can always refi in the future. With paying off some small debts to bump my credit I could have about $12-14k saved in 6 months. Duplex's in my area are around $250k and I've been told that there is down payment/closing cost assistance that could fund me $11k total. If true, I could have enough to get into a property. Once in, I'd continue to save a decent reserve fund since I would keep my low cost of living.

If I go with an apartment, I could do a house hack in 12-18 months depending on what kind of rent I could get.

If you were in my shoes and needed to get a place, would you go ahead and go with the house hack or wait, get an apartment, pay of all debt and get a savings together and then do a house hack 1-2 years later?

[Nathan A.]

If it were me, I would wait to buy, as tough as that may be to hear. It sounds like you are going to need more savings. You don't want your bank account balance to go to zero the day you close. "Once in, I'd continue to save a decent reserve fund" sounds like the riskiest part to me. What if the property needs repairs or capital expenditures before you had a chance to build the reserve fund up?

Your attitude is admirable and I think you're on the right track with getting your personal finances in order. What about getting a roommate in an apartment for the next year so you could save money faster?