Feeling stuck 😑 have funds, but can't get a loan 😥

[Mark V.]

Hi All,

I'm feeling very stick right now as I'm having trouble getting approved for loans.

Here is my situation. I am trying to do a cash out refi to get funds to invest --- that part went well I'll have $100K in cash to start out. However, I'm running into roadblocks getting approved for financing for an investment property.

The problem I have is high debt/income ratio. I also have issues with my secondary income. I have a website that grosses over $7500 a month, but most lenders do not want to include that because they want to see my tax returns (which show this at a low profit because in the past I invested back). Going with gross 1099s would double my income.

I'm trying to make a shift here, and maybe even sell my website in the future (it would like sell for about $400K+ at some point) and start jumping into real estate.

Unfortunately, I cannot house hack. I have a family with young kids. I can't move because of the school district and the current area (Austin) is too expensive to invest in. I could do SA, Fort Worth, etc --- but again getting approved is getting difficult. I feel like I'm just getting $100K in cash with nothing to invest in. Has anyone experienced this before? How do you get out of this when you can't house hack your way through it.

I really like to jump into a multiplex, but the loan amount is way too high to get approved. Most multiplexes I'm looking at in these areas are going for over $350K. I'll be lucky to get approved for $200K - $225K 

[Bruce Woodruff]

Check into a bank statement loan, they will count your last 12 months deposits as partial income. Start with a basic house ad flip it, get some experience rather than jumping on a complicated MF....