DSCR vs Bank Statement Loan for Self Employed?

[Daniel Stanojevic]

Hi,

I'm self employed, but my business didn't have that much income this past year.  I sold a property this year and made a good amount in the stock market, so I have those proceeds available to purchase a primary residence for myself as well as a rental property (can be one property for both).  I have a 800+ credit score.

I'm trying to get financing, but I won't qualify for conventional because of the stable income requirement, so I'll need to use a nonQM.

Which is better, a bank statement loan or a DSCR loan? What's the catch here? Is it just the higher interest rates? Do the higher rates make it more difficult to make the numbers work on a deal? If the DSCR is based on the property income, is there a limit to how many of these someone can do or is the limit just how much cash you have available to use for the 20-30% downpayment?

Should I be targeting a duplex or a multifamily (8+)?

I've managed single rentals before, but multi is a different story where I feel a property manager would be preferred (right?).

I'm currently in Columbus, Ohio and I'm quite familiar with the city, but it's recently gotten expensive (pricing downtown like they think this is NYC) and difficult to find any deals.

What do you all think is a good deal when analyzing properties?

Thank you,

Dan

[Stephanie P.]

@Daniel Stanojevic

Don't torture yourself with a bank statement loan. In your situation, your deposits may be declining and a red flag to underwritring. Go DSCR. Much easier and rates are comparable depending on score, ltv etc...

Stephanie