Researching financing options for a freelance artist to acquire a first house hack

Austin, Texas
House Hacking
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Researching financing options for a freelance artist to acquire a first house hack

Jason Cote
Member since 2024 · 1 post · 0 votes

Hello,

my name is Jason Cote, I got a bachelors degree in Interior Architecture & Design in 2024, I worked professionally in Chicago for around 9 months until life happened and I had to move back home. I'm not a full time tattoo artist living in Las Vegas Nevada. 

I make good money, I pay 1800$ a month in rent among plenty of other bills & expenses. I feel like I'm living slightly too costly for my income currently, but most importantly, if anything I'd rather be pouring this money into the beginning of my real estate journey.

My main plan at this point is to seek out owner occupied financing and house hack a single or multi family property in the Austin area every year for the next 5 years. This is honestly what I went to college for, I will be able to specialize in the rehab process as an interior architect. That being said, my income as a freelance tattoo artist currently is the one thing I'm afraid will hinder my chances to be bankable. I can provide bank statements to prove all my income, but it's messy at best right now, need to figure out my tax situation with this business as well.

Im at the point where I feel I can sustain my profession for years to come, giving me my first window of opportunity in my adult life to attempt this effort, I just seek guidance and wisdom in relation to how I can get financing from such a strange place of employment.

I've been watching Bigger Pockets for a decade + and I've been waiting for the right time in my life to finally be able to make this plan come to fruition. I know that as an investor we are only as powerful as those we surround ourselves with so I look forward to connecting with you all. I plan to be on here more regularly as I move forward on all of this.

if you've read this far I deeply appreciate it and look forward to talking to anyone about any aspect of this.

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  • Ricardo Gonzalez
    Property Manager · Orlando, FL · Member since 2026 · 22 posts · 18 votes
    2mo

    Hey Jason, great plan and the house hacking strategy you're describing is a smart way to build a portfolio. Your employment situation is definitely something to work through but it's not a dealbreaker. Here's what you need to know.

    First, there's an important distinction that will affect how a lender looks at you. Are you working as an independent contractor under a shop, meaning you get a 1099 at the end of the year? Or do you own your own tattoo business outright? The documentation requirements are similar either way but it's worth knowing which category you fall into before you talk to a lender, because they'll ask.

    For FHA loans, self employment and 1099 income is absolutely usable but lenders have specific requirements. The standard is two years of that income history documented by federal tax returns. That's likely your biggest hurdle right now. If your taxes aren't filed or your reported income is low because you've been writing things off, the lender will use what's on your returns, not your bank statements.

    Here's what a lender will typically need:

    1. Two years of federal tax returns

    2. A year to date profit and loss statement if you own the business outright

    3. Two to three months of bank statements

    4. Documentation showing consistent income over at least two years

    The tax situation you mentioned needing to sort out is actually the most important thing to tackle first. Get your returns filed if they aren't, and talk to a CPA who works with self employed or 1099 workers before you do. How you file can meaningfully impact what income a lender will use to qualify you.

    Once you have two clean years of returns showing consistent income you'll be in a much stronger position. In the meantime start having conversations with lenders now so you know exactly where you stand and what gaps you need to close.

    Good luck, the plan is solid.

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  • Joaquim ResendeBusiness Member
    Member since 2026 · 11 posts · 2 votes
    2mo

    Jason, 

    It sounds like you've got a well-thought-out plan and a skill set that can give you a real advantage as you start building your portfolio.

    The one thing that stood out to me is your comment about your tax situation. As a self-employed tattoo artist, your tax return will play a significant role in your ability to qualify for financing. While it's important to minimize taxes, it's equally important to understand how deductions can impact the income a lender uses to approve your loan. Finding the right balance is something that's worth planning for well before you start applying for financing.

    I'd recommend getting ahead of this now rather than waiting until you're ready to buy. A little planning today can make the financing process much smoother a year from now.

    I work with real estate investors and self-employed business owners on exactly these types of tax planning conversations. Whether it's me or another qualified advisor, having someone help you align your tax strategy with your investing goals can save a lot of headaches down the road.

    Best of luck! I think your house-hacking plan is a great way to get started, and your design background should serve you well when it comes to adding value to properties.

    STEPPEDUP ADVISORY GROUP, LLC
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  • David IvyPro Member
    Real Estate Broker · Austin, TX · Member since 2016 · 353 posts · 699 votes
    2mo

    @Jason Cote

    Ricardo’s advice to speak with a lender now is probably the most important takeaway. Not necessarily to get preapproved today, but to have someone experienced with self-employed borrowers review your actual situation and tell you what income they can use and what your path to financing looks like.

    I would make sure that conversation specifically addresses the move from Las Vegas to Austin. Tattoo income can depend heavily on an established local reputation and clientele, so even with a solid income history in Vegas, a lender may question whether that income is likely to continue after you relocate and what evidence they would need to establish that continuity.

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  • Ray WilliamsBusiness Member
    Lender · Denver, CO · Member since 2017 · 160 posts · 72 votes
    2mo

    Jason, welcome, and this is a solid plan. Ricardo and Joaquim already covered the biggest piece: two years of returns is the standard measuring stick most lenders use, and how you file between now and then matters more than what's sitting in your bank account today. One thing worth adding: FHA doesn't always require a full two years of self employment if you can show two years total in the same line of work first. If you can document time spent tattooing or apprenticing before going independent, some lenders will count that toward your history even though the freelance business itself is younger, which shortens your runway. The other piece nobody has raised yet: being messy on paper cuts both ways. If your write offs are aggressive enough that your net income after two clean years still doesn't support the loan amount you need, bank statement or non QM programs exist specifically for self employed borrowers in that spot. They qualify off deposits into your business account rather than your tax return's bottom line, at a bit of a rate trade off, and they can bridge you while you build the two year FHA file. Since you're planning a multi year house hack strategy anyway, it's smart to map both paths now instead of picking your first property around whichever loan happens to be available that year. I work in mortgage lending and see this exact self employment gap close in about a year once someone has a plan for it.

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    2mo

    The biggest thing I'd focus on right now is getting your business income documented as cleanly as possible. Most lenders want to see consistent income, usually backed by tax returns, although some have bank statement or DSCR-type programs that can be a better fit for self-employed borrowers. I'd talk with a mortgage broker who regularly works with freelancers and real estate investors rather than just walking into a big bank.

    Since you're planning to house hack, I'd also spend some time understanding how owning part of the property as your residence and renting out the other units affects your taxes. From day one, keep good records of your business income and your property expenses. It'll make qualifying for future purchases, and filing your taxes, a whole lot easier.

    Sounds like you've been thinking about this for a long time. Now it's just a matter of getting your finances organized so you're ready when the right opportunity comes along.

    Happy to connect!

    [email protected]941-914-7779
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  • Amber Stout
    Lender · Tampa/Saint Petersburg, FL · Member since 2014 · 356 posts · 148 votes
    2mo

    Hey Jason! House hacking is actually how I got started and now I’m on the mortgage side helping a lot of house hackers figure out financing.

    Being self-employed/freelance doesn’t automatically mean you can’t qualify. The big thing is how the income is documented, how long you’ve been earning it, and what shows on your tax returns. There may be a few different ways to approach it depending on your situation.

    Happy to take a look at the financing side with you and help you figure out what you’d need to get in position to buy.

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