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Updated almost 6 years ago,
How can rental income substitute W2 income for mortgage?
Might be a basic question, but havent been able to figure it out. Lets say you make 100k in a W2 job, and have a few properties as additional rental income. How does one plan out how to calculate how much they will be able to get financing for w just the rental income?
- You can either collect rent in your name or in LLC, and the mortgage takes (75% of rent income?) in consideration adding it to your W2 income, to qualify you for mortgage?
- If W2 disappears, how long does it take for rent income to substitute it, lets say its also 100k after a few months/years?
- Is it better to have rental income come through an LCC (pass through taxation), or personal name? For mortgage purposes.
I assume personal name as its easier to get bank financing for personal name.
Thanks a lot for any hints.