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Updated almost 6 years ago,

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Zether Wrong
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Purchasing a home - Self Employed heck.

Zether Wrong
Posted

I'm having trouble purchasing my first home. I want to buy a townhome in Las Vegas, live in it a few years and then turn it into a rental.  

I run into a problem  with lenders being self employed.  I can’t have it both ways i.e – minimize my income for tax purposes, but present higher numbers for borrowing purposes. What helps with one (taxes), hurts with the other (borrowing). There’s no way to reconcile the two that I can see.   The two banks I have spoke with that pre approved me want me to amend my taxes!   Hopfuly some one here might have some advice.

Town home offer accepted in Las Vegas at: 395k

2017 Gross 115k Net 51k

2018 Gross 334k Net 38k

On both years, I expensed a rental in California at 40,800 that no one wants to add back into my net, even though once I move to Vegas I wont need the rental. In Fact,   my travel expense in 2018 was 90k  -- all of which would go away with a Vegas  property. 

I only wanted to put 10% down because I only have 100k in cash right now.

Should I amend my taxes to pay more, but show a higher net? Are there lenders who work with self Employed that could adjust my income by adding back my travel?

Thanks!

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