If you want to do house hacks, it is normally better to have that W2. 

@Jeffrey XenakisA owner-occupied loan normally requires the person who will be living in the property to be on the loan/deed.If you will be giving your friend $80,000 so he can secure a loan, you will want to protect yourself(just incase your friend dies and his estate says the property is 100% his and not yours...Also for him to just run away with the property).You likely want your name also on the deed.Financing through an LLC with more than 1 member normally requires commercial / portfolio lending which will be more than just 5% down.best of luck!

REI is all about taking risks, and since you only have enough capital to try out one strategy right now (perfectly normal for someone starting out - no, you're not behind the curve) then I would start with your safest bet that is going to make you more profitable in the long run, either with knowledge or cash flow... ideally both!

A co-signer really needs to have much more income than 'normal'. 

That's what's normal farther south. https://images.squarespace-cdn.com/content/58f01a4bb3db2bed6e841cab/1493138201241-ALFKKRQCDG3CZ7Q2BTID/apartment-building-steel-concrete-7.jpg?

Otherwise, if you're not comfortable with it, I'd say keep looking for a renter with a more "normal" amount of debt. 

I will also not have to do any renovations etc as I would normally after purchasing a property.

A normal purchase will allow you an option period to have a full inspection which includes looking behind the electrical panel , under the home, in the attic etc. from there if your inspector sees something of concern they will include that on your report and from there you can get second opinions from a plumber, electrician etc. this is always my biggest concern for first time investors who buy from wholesalers - no inspection, all cash, many times inaccurate repair and ARV figures and no one in your corner.

I’m not one who normally fears catching covid but I would like to minimize my risk this particular week with vacation coming up next week and being around my 3 month old and 3yr old more.

I can assure you that I don't normally clog toilets, and I don't use much TP.