Out-of-state Independent Contractor looking to buy first rental property

[Myles Ellison]

Hello! I am looking to buy an investment property in the Pittsburgh area in the next year, but am worried my Independent Contractor situation might complicate getting a mortgage. I live in NYC, but my brother and family live in Gibsonia outside of Pittsburgh, and I have been visiting them there for a decade. I work in real estate rentals and also am an artist here in NYC, and have two S Corps for both businesses, so my tax returns look like I make less than I realistically could afford mortgage-wise due to write-offs, etc. I have been doing the same jobs for 13 years, so I think that would bode well for me, and I have what I'd consider a sufficient amount saved for a 20% down payment in my price range, plus closing costs, etc, and have excellent credit.

Recently, I have been staying a night in different neighborhoods I have been researching each time I visit. I stayed in Beechview and Avalon recently and think they are cool, and am also open to a lot of other areas. 

I have considered moving out there and doing a proper multifamily househack of a duplex or triplex, which would open up my price range since I could get an owner-occupied mortgage, but I feel like that would be even worse qualification-wise, since I would be moving out and starting a new job as opposed to paying the larger 20% down investment loan and continuing to live in NYC, where I have a work history, and I believe mortgage lenders usually want like 2 years of bank statements and tax forms when lending to Independent Contractors in the first place.

I am wondering if any other investors in the area have invested from out-of-town with a similar work situation (being an Independent Contractor) and how the process went for them. Also, if you have any mortgage lenders you'd recommend I speak to who are local, that would be helpful as well. Thank you!

[Erik Estrada]

Hey Myles, 

Have you looked into a DSCR loan yet?