Lending Options for a 1099 Employee

[Josh Gosnell]

Hi Everyone,

I am a 1099 employee (Just finished my first year as a 1099). My original plan was to house hack a multi-family unit with an FHA here in san diego but cannot get conventional funding or FHA loan without a 2 year 1099 history. But i dont know if i will have enough cash on hand to pay 20-25% down on such expensive properties here. Even if I wait I worry that because of business expenses i write off on my taxes (very different from my actual income) will affect me being able to get approved for enough money due to high cost here.

Wondering if I should just wait it out till the 2 yr mark and take my chances or if you guys had any advice on other options/strategies to get started buying property sooner.  Also, wondering if banks take into consideration I would be renting out other units when lending?