My advice would be to NEVER go without liability coverage.Also, typically speaking, the cost to add premises liability coverage is usually pretty low.

@Mark Gee - I've noticed the reduction in rent prices at Hoboken as well, and it seems like the rentals do not get snatched up as quickly as they used to anymore.

You will need to keep your payments as low as possible for that reason even though you will be losing income on that equity.

With retirement sthill in mind I figure if I can save up 2k a month I can generate enough saving twice a year for down payment on a rental property, create passive income there and once I have built a ness egg for myself then start my TSP back up but at this point I will have residual coming in and my debt to income ratio will be low.

Brrrr is tough since everyone does it, plus construction and contractors are booking right now.The lower budget stuff gets gobbled up by people that have no idea what they're doing or sellers won't take low-ball offers.

100 seems low for per month unless it has a very low assessment.

Low money down.

@Bosko Mijatovic take a moment and consider if you really want to partner with a family member, especially with such a low FICO score.

I'm relatively new to real estate so I'm hoping you can offer some useful insight.Applicant 1: Excellent credit, low debt-to-income ratio, upper-middle-class income, very little available cash in bank account (cash is mostly in stock and retirement accounts)Applicant 2: Mediocre credit, better-than-average debt-to-income ratio, middle-class income, enough cash available to almost buy home outright.

Or, you may take advantage of the owner occupied FHA loans that have a low down payment. 4-plex's are eligible.