Funding a deal without W2 income

[Finnegan O'Connor]

Hey all! Looking for some feedback on my financing plan for my first STR property

Background info:

I have just graduated from college, where I ran a business for the last two years, and am going to continue doing that as it is making way more than I ever could in a construction PM job (what I studied for). That does not leave me with a w2, but a healthy amount of liquid cash through the business. (I have set aside $75-100k for this)

What I want to do:

I would like to buy an existing property with a house or possibly just land and convert it into a short-term rental with multiple units and possibly a wedding/events venue ( I have an entire business plan for this and the project has the approval from the town council).

My funding plan:

Use a hard money loan to buy the property and the renovation/building of the units, then refi into a DSCR loan

[Scott Wolf]

@Finnegan O'Connor, do you plan on occupying the property? If so, many HML's and DSCR firms won't lend on owner-occupied properties. If not, that plan will work if the asset cash-flows well.

If you have two years of tax returns showing profit, you may still be able to qualify for traditional funding to buy such a property, if you do intend to occupy it.