Eager to start REI

Starting Out
3dFollow

Eager to start REI

Hima Malini
Boston, MA · Member since 2026 · 1 post · 4 votes

Hi

I'm late to the REI game. I have had very unsteady income as a freelancer. I'm planning to get a W2 job in this rough market because I'm getting how important that is to secure FHA & conventional loans. In summer 2027, I'll have access to about $200-500K. But I won't have 2 years of W2s by then but need to begin my REI journey because I'm not getting any younger. I've been watching tons of BP podcasts (like Neo in Matrix downloading various software on martial arts). BUT I know that until I actually DO IT, it matters little how many I watch. I have done some renovations (both overseeing trades--in hindsight as a general contractor), did some property management & some tiling, rehabbing furniture to customize for these renovations. Anyway, I loved the rehab work to seeing a space really transform into a fully functional & aesthetically modernized home. I'm scanning MLS to look at some markets so that when the time comes, I see what a good deal might be. Does anyone have suggestions for how I should move forward with no W2s but a good chunk of cash to put into buying a place (most likely a duplex-quadplex)? I likely will know no one in any of these markets so will need to build my team in advance.

4Reply
901 views

19 Replies

Jump to latestLatest
  • Jimmy Samaha
    Staten Island, NY · Member since 2013 · 116 posts · 52 votes
    3d

    Having the cash actually gives you more options than people think. Without 2 years of W2s or 2 years of freelance tax returns, a conventional loan is going to be tough, but a DSCR loan qualifies off the property's rent instead of your income. Expect 20 to 25% down and a rate maybe 1 to 1.5 points higher than conventional, so with 200 to 500k you could buy a 2 to 4 unit and still keep 6 months of reserves. Another route is buying with cash, getting it rented, then doing a cash out refi after about 6 months to pull most of your money back out for the next one.

    If you file as a freelancer, some lenders will also do 12 or 24 months of bank statements instead of W2s. Talk to a couple of lenders now so you know what your tax returns need to show by next summer.

    For the team, pick the market first and spend the next few months learning it before the money is ready. Find a local agent who owns rentals there, a property manager, and an inspector, and ask the PM what rents and turnover really look like on the specific streets you're considering. Your rehab and GC background is a real advantage, just remember you won't be there to watch the crew, so line up someone local you trust to walk the job for you.

    0Reply
  • Matthew MorrowBusiness Member
    Investor · PA - NY - NJ · Member since 2019 · 823 posts · 288 votes
    2d

    @Hima Malini welcome. The rehab and tiling background is going to help more than you'd think. You'll walk into a house and actually know what you're looking at. Watching the MLS is a good way to learn, and I'd pay attention to what things actually sell for, not just what they're listed at. On the W2 timing, I'd talk to a lender now so you know exactly what they'll want to see by next summer. Best of luck getting started.

    [email protected]484-791-6200
    CORE Team | Realty ONE Group Supreme548 Reviews
    WebsiteView Page
    0Reply
  • Dan NelsonBusiness Member
    Real Estate Broker · Chicago and Kansas City · Member since 2016 · 109 posts · 100 votes
    2d

    Hima, cash plus real rehab skills is a strong place to start. A few things from the buying side.

    1. Decide early if you will live in the building. That one choice changes the loan. On a 2 to 4 unit you live in, a regular loan can go as low as 5% down once your income history qualifies. One you don't live in usually takes 25% down. With $200K to $500K, the smallest down payment isn't the point. The cash you keep becomes your rehab money and your cushion.

    2. Your tile and contractor background is your edge. Look for the dated building on a good block, the one other buyers skip because of the kitchen. You can already see what it becomes.

    3. When you interview agents in a new market, ask one question first: what do you own? Someone who owns small buildings will answer in seconds.

    4. Practice now. Pick three listings a week and write down what each unit would need to rent for to cover the payment. By next summer you will spot a good one fast.

    You are closer than you think.

    [email protected]773-295-1751Podcast Guest on Show 2 “Slam Dunk” Small Multifamily Deals in 2023 (and Where to Find Them)
    Dan Loves Houses4.981 Reviews
    WebsiteView Page
    0Reply
  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 519 votes
    2d

    If an owner occupy investment property, and you can't qualify for a conventional loan, you could do a bank statement or some other kind of non qualified mortgage (non-QM), not conventional loan. If you can qualify with W2s, you could do a conventional loan. An owner occupied loan will be calculated based on your personal income and your debt to income (DTI) ratios. How it's calculated depends on the type of loan program.

    If a non owner occupy investment property, you can use a DSCR loan which will be structured based on the actual or projected property rent, not on a borrower's personal income or DTI ratios (beyond the ability to make the down payment for the property).

    All types of loans will be calculated based on your credit score and loan to value (LTV) will be factors as to what the rate ends up being. Happy to connect to discuss further.

    [email protected]818-770-0340
    Bright Skyline518 Reviews
    WebsiteView Page
    0Reply
  • Hossein Sharifi
    Investor · Member since 2023 · 133 posts · 68 votes
    2d

    @Hima Malini With that much cash, DSCR is probably your cleanest path, and it doesn't care about W2s. The lender checks whether rent covers the payment, usually 1.0-1.25x. Rough example: a $400K fourplex renting $3,600 total, 25% down at 7.5%. P&I on $300K is about $2,100, plus maybe $700 for taxes and insurance. $3,600 against $2,800 is about 1.29x, which clears most lenders. Expect 20-25% down, around 6 months of reserves, and a rate roughly 0.75-1% above conventional.

    One thing to weigh: if you'd live in one unit, waiting for the W2 history opens FHA or 5% down conventional, which is a lot less cash per door.

    0Reply
  • Sal Bossio
    Member since 2026 · 5 posts · 0 votes
    2d

    Hima, the big thing on FHA and conventional is cash doesn't count as income. They want job history you can document, and the cash mostly covers down payment and reserves. So with no W2s by summer 2027 those two get tough unless you pick up a job before then.

    If you don't, look at asset depletion (some lenders call it asset utilization). Its a non-QM loan where the lender takes your liquid assets and divides them over a set number of months to come up with a monthly income number. With 200-500K that can actually work for an owner occupied duplex to quad. Rate is usually higher than FHA though, and every lender does the math a little different so ask.

    Stuff to do now: keep the money in one or two accounts and don't shuffle it around, every big deposit needs a paper trail. And talk to a lender a few months before you start shopping, not after you find the place.

    fwiw I'm a loan officer with Barrett Financial, just sharing what I see on the lending side.

    0Reply
  • Dan Duenas
    Lender · Member since 2026 · 52 posts · 26 votes
    2d

    Hima — the fact that you're asking "which lane" before you've bought anything puts you ahead of most people. That fork matters more than the first deal itself, because it changes which loan you even shop for.

    If you live in one of the units, it's a primary-residence loan — DSCR does not apply to a place you live in. And please don't take a W-2 job just to get a mortgage: bank-statement loans are built for self-employed and freelance borrowers, using 12–24 months of deposits instead of pay stubs. If you go pure investment, no living in it, then it's DSCR — the loan qualifies on the property's rent, no personal income docs, no two-year W-2 history.

    One trap either way: if you cash-buy and plan to refinance out, line up a no-seasoning takeout before you close the cash purchase, or you can end up sitting on your own money with no refi window. And pick one market and learn it cold before next summer — "anywhere" is not a strategy.

    Quick note on me: I'm NV-only on primary-residence lending, but my manager handles the rest of the country — happy to connect you if the live-in route is the one you pick. Either way, good luck getting started — the first one is the hardest, and it gets a lot clearer after that.

    0Reply
  • J CastroBusiness Member
    Lender · Florida · Member since 2025 · 743 posts · 263 votes
    2d
    Quote from @Hima Malini:

    Hi

    I'm late to the REI game. I have had very unsteady income as a freelancer. I'm planning to get a W2 job in this rough market because I'm getting how important that is to secure FHA & conventional loans. In summer 2027, I'll have access to about $200-500K. But I won't have 2 years of W2s by then but need to begin my REI journey because I'm not getting any younger. I've been watching tons of BP podcasts (like Neo in Matrix downloading various software on martial arts). BUT I know that until I actually DO IT, it matters little how many I watch. I have done some renovations (both overseeing trades--in hindsight as a general contractor), did some property management & some tiling, rehabbing furniture to customize for these renovations. Anyway, I loved the rehab work to seeing a space really transform into a fully functional & aesthetically modernized home. I'm scanning MLS to look at some markets so that when the time comes, I see what a good deal might be. Does anyone have suggestions for how I should move forward with no W2s but a good chunk of cash to put into buying a place (most likely a duplex-quadplex)? I likely will know no one in any of these markets so will need to build my team in advance.

    Hi @Hima Malini welcome to BP! You're not late to the game at all! In fact, your renovation, property management, and hands-on experience give you a foundation that many first-time investors are still working to build.

    With $200K–$500K potentially available in 2027, I would focus on three things now: choosing the right market, learning to analyze deals, and building your investment team before you're ready to buy. Start connecting with local real estate agents, property managers, contractors, and lenders in the markets you're researching. Having the right people in place can make a significant difference when an opportunity comes along.

    One important point: while W-2 income and employment history can matter for traditional FHA and conventional financing, they aren't the only paths to real estate investment. Depending on the property, your financial profile, and your investment strategy, other financing options may be worth exploring.

    We work with real estate investors and understand that every investor's situation is different. My advice is to start preparing now, run the numbers on potential deals, and learn your financing options before committing your capital.

    You don't need to know everything before your first deal, but you do need to understand the numbers and have a plan. Your hands-on renovation experience could be a real advantage, especially if you're considering a multifamily property that needs improvements.

    Wishing you success as you take the next step toward building your real estate portfolio!

    JCREIG Capital Funding
    WebsiteView Page
    0Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 566 posts · 238 votes
    2d

    @Hima Malini You are not late—you are preparing with useful renovation and property-management experience, which gives you a stronger starting point than you may realize. The goal now is to turn that experience and future capital into a financeable, repeatable plan.

    Before choosing a market, speak with several investor-focused lenders and a CPA. Ask how your freelance history, new W-2 income, cash reserves, owner-occupancy plans, and projected rents would be treated under conventional, FHA, portfolio, DSCR, or seller-financing options. Do not assume you must wait two full years; qualification depends on the complete income history and loan program, and a lender can identify the documentation and timeline you need.

    In the meantime, define conservative buy criteria, preserve reserves beyond the down payment, and practice underwriting actual duplex-to-fourplex listings. Narrow the search to one or two markets, then build relationships with a local investor-friendly agent, property manager, lender, inspector, attorney, insurance broker, and contractors. Interview them using the same sample deal and compare their assumptions. When the capital becomes available, start with a property whose cash flow and repair scope remain manageable even if rents, vacancy, financing, or renovation costs are less favorable than expected. Education helps, but patience and a strong margin of safety are also part of taking action.

    [email protected]
    WEMBO CPA532 Reviews
    WebsiteView Page
    0Reply
  • Jeff Roth
    Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 471 posts · 260 votes
    1d

    Hi Hima from Boston, MA-

    Congratulations! You are self-employed and are looking to get started with real estate investing later in life. You will have money for a downpayment but not W-2 income and ask how to get started and finance the purchase.

    If you plan to live in one of the units as your primary residence and rent out the other units, there are loans for the self-employed to help you do that.

    If you plan to buy it strictly as an investment you can get a Debt Service Coverage Ratio or DSCR loan that uses the income or potential income of the property to qualify the loan and as long as you have the downpayment and decent credit they will finance you if the rents are more than expenses.

    As far as building your team in the market you are interested in investing look for an investor friendly Realtor with a teacher's heart and personal investing experience to help you, or a local property manger, and/or more experienced investor to help and be a mentor.

    To Your Success!

    0Reply
  • Leon Timmon Sr.
    Real Estate Agent · Detroit, Wayne County · Member since 2026 · 20 posts · 14 votes
    1d

    You’re actually in a good position because you’re giving yourself time to prepare before you buy.

    If 2027 is the target, I’d spend the next year narrowing down a few markets, talking with investor-friendly lenders, and analyzing real properties regularly so you get comfortable recognizing what a good deal actually looks like.

    Since you’re interested in duplexes through fourplexes, get clear on whether your main goal is cash flow, house hacking, or long-term appreciation. I’d also start building your team now — agent, lender, inspector, contractor, insurance contact, and property-management option.

    And if Metro Detroit or the surrounding suburbs ever end up on your radar, I work this market every day and would be glad to be a local resource. The biggest thing is to have your criteria and team in place so when the right property shows up, you’re ready to move.

    0Reply
  • Nyisha Walton
    Lender · Houston, TX · Member since 2026 · 75 posts · 19 votes
    1d

    Hima, you may not need to wait for two full years of W-2 income to start planning this. If the property will be strictly an investment, a DSCR loan may qualify primarily on the property's rents. If you plan to live in one unit, a bank-statement or asset-depletion program may be worth reviewing depending on how your freelance income and available funds are documented. With $200,000 to $500,000 expected, I would also be careful not to tie up all of your liquidity in the purchase and renovation. I'm Nyisha with EquityNest Capital. If you would like, I can help you map out what documentation to preserve now and which financing paths may fit by summer 2027. No pressure.

    0Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 963 votes
    1d
    Quote from @Hima Malini:

    Hi

    I'm late to the REI game. I have had very unsteady income as a freelancer. I'm planning to get a W2 job in this rough market because I'm getting how important that is to secure FHA & conventional loans. In summer 2027, I'll have access to about $200-500K. But I won't have 2 years of W2s by then but need to begin my REI journey because I'm not getting any younger. I've been watching tons of BP podcasts (like Neo in Matrix downloading various software on martial arts). BUT I know that until I actually DO IT, it matters little how many I watch. I have done some renovations (both overseeing trades--in hindsight as a general contractor), did some property management & some tiling, rehabbing furniture to customize for these renovations. Anyway, I loved the rehab work to seeing a space really transform into a fully functional & aesthetically modernized home. I'm scanning MLS to look at some markets so that when the time comes, I see what a good deal might be. Does anyone have suggestions for how I should move forward with no W2s but a good chunk of cash to put into buying a place (most likely a duplex-quadplex)? I likely will know no one in any of these markets so will need to build my team in advance.

    Hey Hima, you’re not starting from zero. Your renovation and property management experience will be a big advantage. I’d use this time to build your lender and contractor network and analyze deals before committing. If you’re open to investing out of state, the Midwest is worth exploring for duplexes and small multifamily properties with more affordable entry points.

    [email protected]614-418-6081
    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    21h

    Hima, with a rehab background and cash lined up, you're in a better spot than most people starting out. One thing I'd add to the loan advice above: since you won't know anyone in these markets yet, let the numbers narrow your list before anything else. When you scan the MLS, run every duplex-to-quadplex through monthly rent versus price, then subtract taxes, insurance, vacancy, repairs and management. Markets where a lot of deals land near 1% of price in monthly rent leave room for the surprises every rehab brings. Columbus is one I'd put on that list. In my experience a lot of deals there hit the 1% rule and still cash flow after every expense, many come with $20K-$30K of built-in equity at purchase, and multifamily entry starts around $200K. Landlord-friendly rules and evictions that wrap up in about 30 days when uncontested help too. Whatever markets you pick, build the team first (agent, lender, property manager) and ask each for references. Feel free to connect, and I'm happy to make introductions to investor-friendly team members here in Columbus.

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9121 Reviews
    WebsiteView Page
    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    21h

    @Hima Malini

    Hi - still around? It's never "too late" to start, but I would just make sure your expectations are set properly, and they should be: you won't get any income or net cash flow in the first several years (or potentially even longer.) None. House hacking and LTRs are equity building strategies right now.

    I hope that helps. Non-AI response. Nothing to sell.

    0Reply
  • Heather MacAulay
    Washington, DC · Member since 2025 · 12 posts · 0 votes
    21h

    Hi Hima I’m in a Very similar situation!

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    20h

    Look into getting pre-approved for a DSCR mortgage - but you will NOT be able to occupy the property.

    DSCR lends on the Debt-Service Coverage Ratio of a rental with 20-25% down and loan rate depends partially on your credit score - but, NOT your income.

    [email protected]248-209-6824
    Logical Property Management4.9465 Reviews
    WebsiteView Page
    0Reply
  • David Ghazaryan
    Member since 2021 · 12 posts · 1 vote
    11h

    im a broker in Vegas. Conventional and FHA want 2 years of history even for self employed, there are some exceptions but dont count on them. If you want to buy rental property you dont need W2s at all, DSCR qualifies off the rent. Bank statement loans are another route for a primary, they use 12 or 24 months of deposits. Get your statements clean now, devil is in the details with these

    - David

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free