All Forum Posts by: Sergey A. Petrov

@Dan Host - something just popped into my head! Talk to a CPA first. But, as it stands, you have unreported/ underreported income. You could amend and re-file up to, I believe, three years worth of tax returns. When done voluntarily, I think, IRS even waives some penalties that would apply should they discover the discrepancies on their own. Check with the lender as well to see if they’ll accept amended returns. I see no reason why they wouldn’t but who knows. And you’ll be killing two birds with one stone - complying with the tax code and qualifying for financing 

Quote from @Dan Host:

@Sergey A. Petrov I agree, and I'm not dodging any taxes. I'm simply trying to make an informed decision, quickly.

If I knew two years ago (what I'd need for W2 income to qualify) what I know today, I 100% would've reported every dime. I want to start investing, and I'm attempting to discover the most effective route.

So please, I'm not here for the lecture. If you have any further advice, I'm all ears.

It seems you’ve answered your own question. Now you know, so you can start your journey and be ready to qualify hopefully after the next tax return. I wouldn’t trade a higher paying job for a lower paying job. Other products are out there but if you are all cash (without depositing every penny in your bank account), they likely won’t help you today. Find a partner with verifiable income or start your planning now and make a move once you are able to qualify. 

If you say you are worried about “ever rising stupid property taxes”, tenants say they are worried about “ever rising stupid rent”. Things go up, learn to navigate an operate your business adjusting for inflation and other things 

Easy. Get a job, save some money, and then go at it. Another route is to find a partner with capital income. Trying to “get proof” of something you don’t have is a sure way of getting in trouble 

If your tips are properly reported, they show up on your tax returns and help you qualify for the loan. If they are not reported, that is called tax evasion and people go to prison for that. As a side note, you are posting on a public forum for the whole world to see.

Depends on the lender, the type of loan, and your personal financial situation (debt to income ratio, credit score). Check with your lender, they’ll tell you.

You may be overvaluing your property. The bank is looking at hard data they can see and with “desktop appraisals” they can be wrong too. The actual value, which will determine your 80% equivalent in dollars, would need to be substantiated by an independent appraisal 

You don’t get title insurance on a sheriff’s sale. You buy it as is subject to any and all senior lien holders. You do want to pay a title company to run a title report for you so you can see what issues exist before you go bidding your cash away. And yes these are as is

$163k+$40k is roughly $200k. Sale price of $230 less 10% selling expenses is roughly $210k. That gives you a $10k spread. What are your carrying and holding costs? And overruns on construction plus potentially extended time on the market and/or price reductions in a softening market? Too slim of a margin in my mind…

Forget the 1% rule. Take 20 other “rules”, come up with your own comfort zone investing matrix and go from there. 1% may get you cash flowing twenty bucks a month and when you go to sell, you realize your property not only failed to appreciate or keep up with the 9% inflation, it actually depreciated. Pick your devil. $20/mo cash flow or $20k net profit if you decide to sell in 12 months.