Updated about 7 years ago on . Most recent reply
Lending Qualifications & Tax advice needed 4 BRRRR Self Employed
My husband and I bought a house with cash with the intention to finance it once the rehab is complete and a tenant is placed. This will be the first of many BRRRR deals if we do this right.
Currently, all our income is self employed. We'd like to lower our taxable income by pulling out cash on 3-4 BRRRR deals per year thus reducing the amount of taxable income we would need to earn. Ideally, we could keep our earned income at or near 30k if we could pull out enough cash annually from the BRRRR deals.
We have 3 houses free and clear and another one with a small mortgage. No other debts.
Is this a viable plan? Can we get financed if our income is low or will we hit a road block? What criteria do lenders look for when qualifying an applicant? All advice is truly appreciated so thanks in advance!