@Derrick BurtleUS bank does loans as low as 35k

No we did not come to any terms, the seller's equity in the property was very low which took owner finance off the table.

I'll warn you, mine are low.

In my mind, a house hack should create a very low ($500 or less) monthly housing expense or eliminate your housing costs all together.

On a whim I just thought I should check it since she never seems to have money, and low and behold it was canceled months ago.

If you have done your homework and the property is sound, there should be nothing materially wrong such that a reasonable insurance policy would not cover.If you continue to do your homework and screen your tenants properly, you should have a low risk of them destroying the property that an insurance policy would not cover. 

My concerns are I am currently working on my credit (low 600 Fico), I have limited savings and the house is in need of renovations to bring it up to date.

Note buyers love prepaid interest and balloons This gets their IRR up even if rate on note is low.

You have a low prop 13 protected tax base.

Therefore that’s a slow and essentially undesirable market to even think about buying in unless it’s a low income area.