Karl, You're living your worst case scenario right now! 

Also depends on what you mean by modest income and bad credit....Worst case like someone else mentioned, you could stay in this property and buy the next with a DSCR.

You are much better of preparing for the worst case scenario and adjusting your strategy accordingly.  

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.PM us if you’d like to discuss this logical approach in greater detail!

They're scaring me... a lot.Of course, we're only hearing about the worst cases in the news.

Buy the worst house in a great neighborhood and fix up.  

Worst case you’ll get it back when they find another buyer.

The worst part is that it's usually way too easy to get your license, and the consequences for these sleazy agents are usually non-existent or not harsh enough. 

But education starts somewhere, and basic analysis and due diligence will enable the investor to avoid the worst investments.  

Especially if the other kids follow suit, they'll likely need some kind of housing for a significant period of time nearby so buying now wouldn't be the worst move.