Should I Partner with Dad on First Deal?

[Daniel Whitmore]

I am a very concerned about obtaining a loan for my first deal. My goal is to find a 2-4 unit property by December. I am willing to move in (out of state) and house hack to cut my expenses.

I have $50K I want to use towards a down payment + closing costs. I have another $10-15K for rehab if needed. If there are unforeseen problems, I have additional capital in stocks I can liquidate. I have 800 credit score. I have $0 debt.

My concern is my employment situation. I work as a “freelancer”. Last year I received 6 W2’s and total gross income was less than $50K. My rent is nearly 40% of my total income. Not good! I’m in a transition period where I’m trying to make a career change into something that will provide more income. It may take some time.

I’ve had conversations with a couple lenders (credit unions) and they say it will be very challenging for me to get a loan. They instructed me to get a better paying W2 job or cut my rent in half.

My father has (reluctantly?) offered to partner or co-borrow / co-sign so that I can obtain a loan. Ideally I would like to avoid this.

Has anyone been in this situation? Any advice? I need help identifying the pros and cons of partnering with my father who isn’t necessarily interested in buying real estate (though he has the means and I think he should).

Lastly, am I better off waiting to do my first deal until I have transitioned into a new career?