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Updated over 14 years ago,
Buying second prop after renting first
I have lived in a house for few years that I own, now I moved out and rented it, next month I want to buy another investment property in TX (I'm in CA), I am self employed and I know I can afford it. Problem is proving it to the bank. I do payroll for myself but that's only $40k a year the rest i take as dividends from my corporation. I heard that banks will consider rental income as income only if you are a seasoned landlord. How would I go about proving that, besides having a rental contract and tenants paying me cashiers check that goes to specific account. House has only been rented for a month.
Thank you
John