We discovered a few things  on the application that I don't know how to think about:- Applicant has 5 bad debt accounts that were charged off, most recent one 6 months ago auto loan, $12k in outstanding debt (applicant indicated it was a bureau error)- For prior landlords and personal reference - we did a reverse phone look-up; in all cases the phone numbers were registered under a different last name than what was on the application and that last name matched the applicant's (no exception - for all of them); TruePeopleSearch and similar sites all indicated that the applicant and landlords / reference are all part of the same family and all had some connection to the common address- That said the applicant's FICO is 640+ and there is a verifiable source of income from steady employment (government job)What is your advice regarding this applicant?

If this is all it takes, then why do so many self-employed handymen apply with us for a job?

Hey Alex, this is a pretty common setup, especially for small multifamily deals, so it makes sense that your partner wants a structure that protects his capital while still giving you upside for doing the work.Most people use some version of the following:1.

There is some common ground between selling cars and houses in that they both fall into the very broad category of sales and marketing, like so many other careers do, but that’s about where the similarity ends.

I require them to upload pay stubs or possibly other docs like tax returns especially for 1099 self employed folks. 

Most likely, it’s a mix.What this means for housing and rentalsWhen job growth is slow but positive and unemployment remains relatively low, housing demand doesn’t disappear—it fragments.In environments like this, we tend to see:more roommates and delayed household formationstronger demand for affordable rentals and entry-level housingfewer impulsive buyers, but more intentional onesdemand shifting toward manufacturing, logistics, infrastructure, healthcare, and industrial-adjacent employment rather than pure office rolesThat context explains many of the business and investment moves we’ve seen across the region.Corporate and industrial shifts shaping demandBrown-FormanBrown-Forman announced restructuring, closed its Louisville cooperage, and sold the 16-acre MacLean Avenue site after decades of barrel production.

A lot of borrowers that are self employed have solid personal or business cash flow, but DSCR just doesn’t work because of conservative rent calculations, higher insurance costs, or interest rate pressure.With a bank statement program, qualification is based on 12 or 24 months of business or personal bank statements rather than strictly using property cash flow.

That momentum has been very real.On the macro side, the data is mixed but telling.Inflation fell to 2.7%.GDP growth is at its strongest pace since 2023.Incoming Fed leadership is signaling openness to additional rate cuts.Oil prices are at their lowest level since 2021.At the same time, October and November saw the loss of 983,000 full-time jobs, the lowest full-time employment level since late 2021.

If this trend continues, waiting for prices to fall further could become a tougher bet in early 2026.Unemployment Claims Dip (But Context Matters)Initial jobless claims fell to 199,000, while continuing claims declined to 1.87M.Why this matters: The drop likely reflects seasonal timing — employers often avoid layoffs during the holidays, and many people delay filing claims around Christmas travel.

We have found that a good employment history is the most important indicator of a good tenant.