I am currently looking to switch jobs and have been interviewing for BA type roles in corporate America. My question revolves around W2 vs 1099.
I am currently a W2 employee and i own one 4-unit property. I plan to buy 2-3 more by this time next year and im worried about what would happen if i became a contractor. Some of the best roles in my field are 1099 and I'm worried i would have a hard time getting conventional loans if i make the switch? (i want to max out conventional before going to portfolio)
What would you guys recommend?
Assuming that the pay is significantly more as a 1099 over a W2, I would suggest going to where there is more pay. Even if it becomes harder to get loans, save your additional 1099 income to have higher down payments making the loans equally challenging to get but making the more down a better deal (in some regards). I wouldn't let not having a W2 job stop you from getting better pay or doing what you love.
1099 or w2 it really doesn't matter. it's the debt, income, and other factors that really matter if you'll get the loan. w2 or 1099 is just a choice in how you pay your taxes.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.