Loan vs cash For first property?

Question

Hey there, In a cpl weeks I will be relocating to the Cleveland Area where I plan to buy my first duplex . I'm self employed and only really make about 30 to 40k on average, but I generally write off a lot of my income so on tax returns it appears I am essentially in poverty. I'm wondering if I should just write off less this year to up my income and try to qualify for a more conventional loan or not? The problem is all that cash spent on taxes that I could be saving.

Are there any decent options for funding in my situation without high income via tax returns?

Or should I just buy a home cash and try to refinance later on? is this any easier or will I have the same trouble finding a loan to refi?

Please help with some insights or guidance. I haven't filed taxes yet this year and I need to know the best way to go about it . I'm  willing to waste money on taxes if its my only viable or easy option for finding.

Andrew Angerer · Answer

Best of luck on your move, and good luck in Cleveland! You always have the option of using other peoples money to fund your project,try to find investors right now while the economy is still "good" many people have the money but neither the time nor the knowledge to get started in real estate.

James Wise · Answer

You should utilize an FHA loan. Nothing is going to beat the ability to get into a home for only 3.5% of the purchase price. That's gonna free up so much cash to be used for other things.