Trying to analyze multi family deal/figure out how to finance with no W2

[Joey Devlin]

So I am self-employed and currently have no W2 income. I have found a deal that seems very intriguing on a duplex, and I wanted to hear opinions on how others would go about this deal if they were in my situation. There is an off market duplex priced at $215,000. 2,294 sq ft in total, 2 beds 1.5ba in each side of the duplex, 4bd 3ba total. I would estimate the property needs about 70k in rehab (conservatively, possibly less- I have not seen the property in person), and each side would rent at a minimum $1,300/mo. I guess I am wondering at first if this is a good deal to consider buying, and how would the financing piece go without a W2 income, and needing money for down payment/repair costs. Any insight is greatly appreciated- thank you!

[Carlos Valencia]

Quote from @Joey Devlin:

So I am self-employed and currently have no W2 income. I have found a deal that seems very intriguing on a duplex, and I wanted to hear opinions on how others would go about this deal if they were in my situation. There is an off market duplex priced at $215,000. 2,294 sq ft in total, 2 beds 1.5ba in each side of the duplex, 4bd 3ba total. I would estimate the property needs about 70k in rehab (conservatively, possibly less- I have not seen the property in person), and each side would rent at a minimum $1,300/mo. I guess I am wondering at first if this is a good deal to consider buying, and how would the financing piece go without a W2 income, and needing money for down payment/repair costs. Any insight is greatly appreciated- thank you!

 Hi Joey, 

You can use a DSCR loan to finance the property. DSCR stands for debt service ration which means you can qualify based on the rental income of the property. All you need is credit and assets to qualify. Usually 35-25% down payment. Depending on the ratio. Another option is bank statement loans if your self employed the bank take all your deposits from your business and usually uses half of your deposits as your income. If you have a business with large enough deposits you can potentially qualify using that program. Hope this helps. One other option is Hard money too but that can be very expensive as and its money that is borrowed on limited time like 12 months so you better make sure that will be enough time to complete your project.

@Albert Bui @Matthew Kwan