Positioning oneself for first loan: Claiming taxes
Hello BP.
Thanks in advance for taking time out of your day to consider my question.
I am trying to position myself to obtain financing for another rental property next year.
I currently have one rental property, of which I own 100% of the equity and is cash flowing well.
My problem is that I am self-employed. I recently quit my job to pursue REI full-time.
Despite the great gains in equity I have made this year (roughly 125k), my actual income (as to be used for filing taxes) is just under 30k.
I was told by a mortgage broker that being self-employed would require me to show 2 years of tax returns before qualifying for any financing. I will be filing taxes this week, and will need to wait for next year's taxes before meeting this requirement.
My question is this:
Should I consider paying MORE taxes (show higher income) in order to better position myself for better loan terms in the near future.
Many thanks!