Can you still BRRR if you don't have a W2?

[Navid A.]

Evening BP, 

I'm transitioning out of the military in a year. Curious how difficult it will be (or not) to continue buying properties using the BRRR method when I leave my full time job. I have built up enough cash over the years to buy more property in cash and refi, but will the banks grant me the refi without having a full time job? For clarification, I have a LLC and have a small rental property portfolio. I intend to "work" full time for myself buying rental properties and making my money work for me. Any insight or feedback on this? I know banks will generally accept rental income as a form of income, but this typically doesn't kick in until about 2 years from what I've researched so far. How can I continue buying properties without a W2 or a source of income aside from my cash savings and small rental portfolio? Any and all comments are welcome as I'm trying to plan out my transition. Thank you all in advance!

-Navid

[Tyler Weaver]

There are complicated rules on what specific banks consider income.  You are probably going to be best served by a local bank that is making portfolio loans.  I remember a banker telling me for conventional loans they consider rental income if you have 2 years track record, and consider any property you have owned for over 2 years.  They also do a pro forma income on any property you have owned for less than 12 months and currently have leased out. (only if you have other rentals for 2+yrs) which leaves a gap between the 12 months and when you have owned it for 2 years.  That was really strange to me.

A local lender is more likely to consider whatever rental history you have in tax returns, your capital reserves, your business plan, and their confidence in the property.  I would start networking with other local investors to get referrals on banks, and try reaching out yourself.  Get everything together, have all your financials, pictures of your rentals before/after, a one page outline of your business plan, and details on a sample property you are looking to get financed.  Start meeting with bankers and see what you can come up with.