should I finance or just pay cash

[Gustavo Delgado]

I've been trying to finance a rental but it has not been successful.  Im a tipped employee, so when the bank asks for check stubs and W2 it looks bad but my deposits and my bank accounts along with credit are good in my opinion. ( over 100k in cash and 800 credit score)  so now I've been turned down for financing by big bank and smaller credit union.  My question is. What are other financing options? Or, should I just pay cash for the property?  I would love to finance it and stay liquid but it is getting difficult to get approval.

[Shaun Weekes]

@Gustave Delgado

If you want conventional financing as a tipped employee you need to show 2 years of receiving tips.

I started in this industry in 2004 at 25 and from 17 to 24 I worked for outback steakhouse.  So what I did was hold all my tips until Sundays.  I made cash deposits 4 times a month and made sure it was always the same amount.

Back then loans were a lot easier to obtain. My first investment home was an SFR in LA county. I had no issues with deposits because it looked uniform.

I would strongly recommend making your deposits less frequent and make them the same all the time.  Yes you'll have some extra cash around but if you do this correctly it shouldn't be more than a couple hundred bucks.

PM me or post on the thread if you have anymore questions.