If you'd ask this question while still employed I'd say apply the $8500 toward knocking down the debt quicker but since that is not the case I would build up your reserves to about 6 months then begin applying those funds to bring down the debt. 

My son (age 24) however, is an independant contractor / self employed and is trying to buy a house. 

Also, always verify employment and prior rental history—don’t just take their word for it.

;however, my issue is that I dont have good credit and since im self employed I make.very little income. 

If you go back to work as self employed, there are some NonQM programs out there that can do a cash out refi after just 1 year of bank statements or P&L. 

The guru uses the allure of easy success.

Let's just say compliance officers have a hard enough time educating their employers about compliance, so educating investors who don't already know about it, nearly impossible.  

Verify employment and call previous landlords to avoid tenants with red flags.Rent Setting: Research comparable rentals in your neighborhood to ensure your rent is competitive.Use Technology: RentRedi is a great choice.

The big pros are the strong job market (lots of major employers), good population growth, and still-reasonable entry prices.

Make sure you talk to a Banker or Loan officer that is well versed in both SE (Self Employed) income and also Non/QM programs.One tip I will give you as a Banker is open up a "Business Checking account" and for the next 12 months pay "Everything" out of that account.