They have good income, no judgments or liens and a credit score in the low 600s. 

Online class has a very low probability pass the test.About 50% do not pass 1st time, 35% do not pass 2nd time. 

If you were to choose option one, then I would look into Having a game plan In place that would provide you a similar cash flow as to renting the home out, especially with the likelihood of the property tax being a low amount. 

Rent too low for investment.

Also the housing stock is generally in poor condition in the city, and you have the typical problems that come from low income areas like crime, drugs and violence.

The other thing I like to do, is in off years i.e. low income years I encourage clients to pay taxes by moving income into the current year or funding a Roth IRA of some type in order to use deductions in higher income tax years.

I use that as an example though as I dont like the low quality of tenants and housing stock in Chelsea, though I have owned properties there that Ive sold in the past couple years. 

I paid them $6k and explicitly pointed out the issue of the low middle area of the home, and they did not fix the issue.

I have credit in the low 700s and am looking to make a large down payment. 

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