Credit Issues

[Desiree Smith]

I am 24, my credit has been totally shot from school loans and credit cards the amount isn't high but many deragatory accounts. i currently have 40k in the bank and want to buy a duplex. i'm assuming it would have to be owner occupant because i don't have another house to live in. my credit is now up to 633 and i've been working on it. the score for becaon score is 670. what do u thik the best route to becoming a landlord could be. i just need experienced oppinions because i'm afaid and lost.

[Jean Bolger]

Forgive me if this is stating the obvious, but you'll need to be diligent about making all your payments on time. That will bring your score up, it will just take a little time. Having debt doesn't, in and of itself, hurt your credit score- not paying on that debt does. Get every one of your credit card balances at least under 30% of that card's limit. Also wondering why you are choosing to hold that much cash vs. paying off your consumer debt? I'm not saying it's the wrong choice (f you want to buy a duplex you'll certainly need money for downpayment and reserves) but that debt will have an effect on your debt-to-income ratio that will be used to figure out how much of a mortgage loan you can get.
Have you talked to a mortgage broker? if you find a good one they will help you navigate all this and figure what your best way forward would be. You may be able to qualify for a mortgage at this point but you'll pay more because of your credit. You may be better off waiting til your score improves, or perhaps you'd be better off paying down some debt. There are a lot of different things to consider, and no single right answer.
If you get started (carefully!) in real estate in your 20's you've got a very good shot at financial success. Read as much as you can on this site! There's tons of good information here, and very little BS

good luck!