Any advice out there on the best way to pull away from the full time job and make landlording the main gig. special formulas , cash flow, separate income accounts. My biggest concern is that once I leave my full time job, I will not qualify for new mortgages based on my income. Any thoughts out there or shared experiences on how you all made the transition?
don't quit your day job. My CPA keeps suggesting I go back to work to support my rentals and I've been at it awhile. He makes me sick....but he has a point. Let's say your quit your job and buy some rentals. You rehab them and have big write offs for a couple of years. You go out to the local mortgage banker and produce your two years of tax records and....low and behold, they treat you like you're a bum...few of them even add back in depreciation when they look at your scedules. What they want is a W-2 that goes with a job which takes us back full circle.
Be prepared on the financing end of purchasing and holding real estate. The pendulum is definitely swinging back to conservative lending guidelines.