Creative Finance Obstacle

[Kevin Izquierdo]

My current situation: Im 24, My income was 22,000$ In 2014 (with my current steady job) and really low in 2013 (cant remember the number, but was jumping from job to job) and a 750 in credit score. I want to invest in an owner occupied duplex with an FHA loan in NJ and house hack. I have a little more than 2,500$ for a down payment saved up as of now and no assets, debts, or equity.

I can get a co signer with higher income for me to get pre approved for a loan for a house in my criteria, but by the looks of things, It seems like I could put myself in huge risk due to my low income and no money reserves. Just with 1month of vancancy can pretty much screw me over (rent around my area goes for about 1,500-2,000) and cant even imagine dealing with an eviction (lawyer fees, court fees).

Can anybody please give me some options or suggestions on what I can do to get my REI started?

[Steve Wilcox]

You are in too tight of a spot, need more reserves, I would suggest you be ready to pay 6 months of full carrying costs as well as a few thousand for repairs, especially going into winter in NJ.

Worst case the person doesn't pay, you have to evict them, and something breaks or they destroy the unit. Then you need to repair/ make ready AFTER evicting the person, THEN find a new good tenant. You don't want to be in the position where you are desperate for a tenant and don't have time to wait for the right tenant. 

I would suggest saving up some more, look at side jobs in real estate you can do to earn some extra cash to get you there faster. Also look for properties that you could cover the whole monthly nut on your own and dont have to have the rent to survive.