Financing property now that I'm self-employed

[Jayme Carlson]

I quit my job in December to go out on my own as a handyman. I'm not taking out any loans to start my business as I saved up enough to start. I've got verifiable income from the last several years but there's no way to say for sure how much I'll make this year being self-employed. I'm curious how that will effect my ability to finance my rental property purchases in the future, mainly this year. I already own 1 duplex and I'm looking to purchase a 4-plex this year. Will I have trouble getting financing? I was looking at doing a 203K loan for the 4-plex. Is there anything I can do right now to better my chances for approval? 

[Bob Green]

Hello Jayme,

In the conventional lending world you will have an issue because of debt to income requirements and they will want to see 2 years of self employment. However in the unconventional lending world you personal debts, income and employment are not factors. We look at cash flow of the property, loan to value and credit score. There are several lenders listed here on BP who can assist you - there is hope for sure!