Quitting my 9-5 soon and looking for banks that refi without W2

[Tony Rodriguez]

Hello fellow investors,

I have made a decision to quit my 95K/YR job in January ’19 and move to do full time rehabs, I will have about 350K cash of my own and my living expenses are about $1800. I plan to buy in the Chicagoland suburbs area.

My plan is to buy single family homes/condos/townhomes in the $150-$200K range, spend about $20-40K in rehab. I plan to spend 2-4 months in each rehab to avoid any risk if the market changes.

My experience has been 2 flips, a single-family flip I did about 10 years ago and I’m about to finish rehabbing a 2 flat I purchased in 2014, I originally bought this property with the intention of renting in 2014 but about 9 months ago I decided to rehab and flip it do to the increase in value in the last couple of years.

I’m also in the process of getting my real estate license so that I can list the properties myself and my electrician license as I plan to do some of the rehab myself initially to increase my profits.

I plan to buy these properties cash and immediately refinance them so that I have enough cash on hand to buy the next property.

Do you guys think I’m I going to have issues trying refinance these properties without a regular paycheck? Does anybody know if small banks, credit unions and the like have these types of products and are pretty typical? in the worst case I would have to do a flip at a time but I would really like to do at least 2 at a time. 

Thanks in advance!  

[Chris Mason]

Originally posted by @Tony Rodriguez:

Hello fellow investors,

I have made a decision to quit my 95K/YR job in January ’19 and move to do full time rehabs, I will have about 350K cash of my own and my living expenses are about $1800. I plan to buy in the Chicagoland suburbs area.

My plan is to buy single family homes/condos/townhomes in the $150-$200K range, spend about $20-40K in rehab. I plan to spend 2-4 months in each rehab to avoid any risk if the market changes.

My experience has been 2 flips, a single-family flip I did about 10 years ago and I’m about to finish rehabbing a 2 flat I purchased in 2014, I originally bought this property with the intention of renting in 2014 but about 9 months ago I decided to rehab and flip it do to the increase in value in the last couple of years.

I’m also in the process of getting my real estate license so that I can list the properties myself and my electrician license as I plan to do some of the rehab myself initially to increase my profits.

I plan to buy these properties cash and immediately refinance them so that I have enough cash on hand to buy the next property.

Do you guys think I’m I going to have issues trying refinance these properties without a regular paycheck? Does anybody know if small banks, credit unions and the like have these types of products and are pretty typical? in the worst case I would have to do a flip at a time but I would really like to do at least 2 at a time. 

Thanks in advance!  

 Once your net rental income is 2.5x your personal housing expense, and you have no other consumer debts, and assuming you are only purchasing cashflow positive real estate, you can get a Fannie loan with "Landlord" as your job. 

Alternatively there are programs that will lend based on the cashflow of the property only; the rate will be a tad higher.