Downpayment ready but no income

[Daeun Lee]

First, thank you everyone at BP, I have learned so much reading threads, listening to the podcasts from this amazing community.

After doing some research, I was going to purchase a house since I am already living with 2 other roommates and our rent here in SoCal is so expensive already, but my plan fell through last minute.

I have decided to wait 3-6 months on purchasing primary house and purchase muti-family OOS instead, where the houses are less expensive. My savings is about 200k but the problem is, I am self-employed, and have had low taxable income this year due to Covid19.

What would you guys do in this case? I’d like to hear some advices/suggestions!

Thank you for your time

[Aaron W.]

@Daeun Lee Welcome to the community! To answer your question, you could purchase the property in cash, therefore, eliminating the lender. You could refinance the property after it seasons and the lender is willing to consider the property rental income. Hopefully, by then your income has returned to pre-Covid levels.

Another alternative is to look at hard money who emphasize more the property that you are purchasing than you. You can also look at private money, investors, or partnerships for additional funding or co-signing on the lending docs using their income to qualify.

Financing is an obstacle that can be overcome and should not stop one from investing. There are many options out there to get this done.

Other considerations are to understand your why and goals for investing. Are you looking for cash flow or appreciation? Do you need the cash flow now? What is your appetite for rehab?

Good luck!