Financing First Rental Property!

[Andriy Likhman]

I'm looking to buy my first rental property in Columbus, OH, and ideally, do a BRRRR on it. But here is where my push back came in. Lenders want to see a good and steady income for the past 2 years, and I've been a business owner the entire time and by having a good accountant I barely showed any income for the past 2 years. However, I have about $50k to put down all in cash. Is there a type of lender or loan that will not be based on my personal income? Should I open an LLC for my first property? And how to go about showing cash without paying crazy taxes? Need Help!!!!

[Tina Tsysh]

Unfortunately, you need to show some steady income if you want to get traditional financing on a property. Here are a few options that come to mind:

1. You can go back and amend your tax returns to show higher income, however, that will require you to pay more taxes and some penalties. Consult with your accountant if that's the route you want to go. 

2. Since you said having a co-signer / borrower is not an option, would you want to find a partner and go on a property together? You can use both of your incomes to qualify for a loan. 

3. One of my colleagues was able to get a hard money loan without showing 2 years of taxes. I am not sure if all hard money lenders do that, but it doesn't hurt to ask around. 

Good luck!