Updated over 6 years ago on . Most recent reply
Financing Problems due to High Tax Deductions
I have a W2 job as an engineer, have been paying cash for all of my current investment properties and rehabs. I was able to deduct all of my W2 and rental income for tax purposes through real estate- Thanks to learning from BP!
Currently, I am really trying to use the BRRRR strategy but multiple mortgage officers are all telling me they can't lend to me because I have "zero" income from the tax returns. Not only the refinance, but I'm running into the same problem getting a traditional loan buying a new primary residence.
I also have a HELOC on my current house to fund my rehabs, the mortgage officers use the max HELOC amount to calculate against my income which drops it significantly.
What are some solutions to overcome this? Thank you.