Feasibility Question | Cosigning FHA Loan

[Rob Greer]

Hello everyone - i have a question about the feasibility of a strategy I hope to employ in the coming months to make my first real estate investment: I currently gross ~150K annually, have a 750+ credit score and have saved ~$40k that I can use to purchase an investment property. I am intending to use an FHA loan (or FHA 203K loan depending on the nature of the deal) to fund the purchase of either a one or two unit piece of real estate. However, I will be leaving my job soon to pursue an entrepreneurial opportunity. Given that I will be considered self-employed and will initially not have income (or at least not income that is steady or predictable), I will be having my parents co-sign the FHA loan to fulfill the income requirements. I clearly have sufficient capital to not only fund a 3.5% down investment, but to also make the subsequent mortgage payments. In addition, having my parents cosign the loan should eliminate the concern of no income. My question is, is this a viable strategy? What potential issues may I encounter along the way? Is this an advisable path forward (it seems this is the only option I have to make this long-coveted first real estate investment while becoming an entrepreneur at the same time)? I’m looking forward to your candid feedback / advice! Many thanks, Rob