FHA loan alternatives for no job/income individuals

[Steven Zhai]

Hello everyone!

Info: If I currently don't plan to get any job since I am just starting out on ecommerce and stocks (so in total its like ~30k taxable income last year 25k from stock which needs to be stable for 2 years of tax record to qualify the income requirement). I also plan to use some money from stock to real estate which is around 300k (I know I am revealing too much about myself hope its fine since the situation do need specific information for a more accurate advice). This year I predict to be very close to the last year since I didn't have enough time to work on expanding my ecommerce much until the next month which is unlikely to make a huge difference

Plan: Starting out with 2 multifamily BRRRR at Fort-Worth and maybe get a SFR at Frisco for appreciation and avoid it from appreciating bc I plan to live at Dallas despite it is not confirmed.
Problem: However, regardless I do need income/co-borrower to be able to get a mortgage. I don't know anyone who can help me or who I can trust and be trusted for co-borrower and its even worse to wait for 2 years of STABLE income which is speculation and by that time, things can change a lot. But what I can confirm is to start out in DFW mainly fourplex/duplex, maybe SFR if the math makes sense, and then maybe Houston on the 4-6th property

Solution that I am aware of: As far as I know if its impossible or unrealistic to find a co-borrower reliably from your suggestions if any, then the second option that I know is that I would need a DSCR loan which will have opportunity cost and higher risk for the first few rental properties due to higher down payment and I also plan to hopefully get grants/forgivable loans from local programs often under 60k of additional assistance as a first time homebuyer which cannot be applied to a DSCR property and also disqualifies for future properties that I own if I were to go to DSCR route.

Summary:

DSCR:
+Does not have income check
-Higher down payment = I can buy less rental property = opportunity cost
-Higher risk due to higher out of pocket cost
-Unable to qualify for any grant/forgivable loan ever again.
-Higher interest rates
=I can get a LLC for it but its kind of pointless at the start

FHA:
-I need to figure a way to co-sign with someone, maybe a good idea if I can get it easily. I am not sure how easy is to get one from strangers, since I have no friends relative in Dallas who can help on that (Planned to move there in a month from San Diego). If possible I am open to have side agreement so that I am the only one 100% responsible on the mortgage, and offer secure deposit-collateral. Its fully safe since my parents have decent business outside of country but they have no USA identity so they cannot help on cosign only donate/support me.
+3.5% down payment for at least a year for the property that I am house hacking. Could save more money for an additional property or on stocks/emergency fund

Wait 2 years:
Unless very suggested I don't plan to do this, a lot can change in +2 years and I have missed 2 years of compounding growth in real estate rental income, some appreciation and a bit of equity from mortgage payoff. Its either a guarantee that I could get stable high enough income to get a loan anyways.

Getting a Job:
Unless very suggested I don't plan too much to do this. I know I might be biased but I feel like a job is a trap for me because it takes a lot of time leading to procrastination on good opportunities or delay/miss them, or end up staying like that forever from being at a classic comfort zone mentality. Plus I don't consider myself skilled at physically related work anyways.
Plus I already need to work on a lot of stuff as a INTP-A so lol. Even then it needs to be a stable and decent income job and work for at least 6-2 years for it to work after getting the mortgage.

Feel free to provide any additional suggestion or comments. I am open for discussion

Thank you very much just for reading and hope you the best on your real estate journey!

[Bruce Lynn]

#1....I think you're getting way way way ahead of yourself.....concentrate on property #1...once you get that one set, then you can think of #2 and then #3....

#2....Never use a co-signer and never be a co-signer.  Maybe parents/family can help, but I think it is better to NOT put them in a position or add to their risk.  Seems like every time I see a good person, with a credit problem trying to buy their 1st investment property or upgrade current house it is because they co-signed for someone that didn't pay and ruined their credit.  If you or someone else wants you to be a co-signer, you/they are not ready.  If they are not a good risk for a bank, then they are not a good risk for you.

#3. Get a side hustle, get 4 side hustles.  You're young.  No reason you can't work 100 hours a week for a year or two to build cash and income.  Most of the great investors I know that are really getting wealthy have a SOLID W2 job or business that funds their real estate habit.  While they are out there, I really don't run into many people really building wealth by NOT working or just trying to hustle real estate deals.  As you are running into, lenders typically want to see PROOF of income.  Absolutely NO reason you can't build $100,000 cash stockpile in a year.  Cash gives you more options.

#4.  Otherwise you're going to have to try to hustle owner financed deals, where you are talking the seller into you being a great credit risk.  That's real work and hustle.  Solid and reasonable owner-finance deals don't just drop into your lap normally.  You have to do real work to go out and find them and create them.  That doesn't really sound like it fits your personality.

#5.  One idea is go find a house hack and be their house manager.  Show and rent the rooms and run the house.   You save money on rent and you build knowledge and skills.  Learn on someone elses dime.  Or be a RV manager in exchange for free rent.  Buy a used RV and rent it on a vacant space....those are super cheap.  Get 2-3-4 of those.  While you are saving money and building a small business, roll those up into a real SGF rental in 2-3 years.

Best look and good wishes.