Borrowing someone else's credit (tell me what I need to know!)

[Dan Cumberland]

Hey everyone!

My wife and I want to get into a place that we can house hack a bit on the north side of Seattle.  The challenge is that the market is hot, our income isn't huge, and duplexes are pricey.

We have a few friends with great credit and income owe us some favors.

It seems like if we can have someone cosign to borrow against their credit, we could get into a duplex where 2/3 of the mortgage would be covered by the other unit.

What do I need to know about cosigning or borrowing someone's credit?

Thanks for the help!

-Dan

[Steve Vaughan]

Sometimes barriers to entry are a blessing in disguise.  Overpaying for a property is never a good idea.  Wanna lose a friend quick?  Have them co-sign.  

Not saying you shouldn't get into RE, just don't over-pay.  Think worst-case scenario.  It's 2008 all over again. Prices are falling, vacancies are up and your co-signor was just layed off by Boeing because a gov't contract was yanked.  They need paid off and your tenant neighbor stopped paying rent. You bought at an extremely high price and have no options.  What do you do @Dan Cumberland ?