Advice on financing a duplex with good cash flow

[Maggie L.]

Hi all,

I was looking for advice/perspective on financing a new rental investment.  I'm close to done with my current rehab, and there are a few duplexes in the area that look really appealing (I'm a Realtor so I see a lot) but I can't purchase the way I did before- cash.

I got help on my first two purchases from family but these are family members who would not be comfortable with something like cosigning on a loan.  I know there are some recent changes to lending practices, but I am still mostly self-employed (small income from rentals as employee, as well as starting commissions aka SMALL as investor-friendly real estate agent) so the income part of the equation is tricky for me.

If I could actually put all of my income as taxable income I would probably qualify for a traditional mortgage of the size I need, but because a lot of my income is not considered consistent (1099, stock sales, free rent) I've been told my monthly income doesn't quality.

I know my business partner would not be comfortable using equity from the current homes to finance a new purchase, so I'm trying to do this on my own.  Is there a reasonable way to get a loan or should I just be patient and hope there are good deals next year?

Basically, I have a bit under 2 years of experience managing rentals, and commercial lenders have told me that the houses I pick out make sense for a loan...if I personally had the monthly income they want aka I pick a good cash flow, but I'm too capital rich and income poor to qualify.

Advice/resources to check out?

Thanks
Maggie

[George Hermann]

Hi Maggie,

It sounds like you are off to a great start as an investor. It's important to your long term success that you continue to look for the next deal, but don't get in over your head. There will always be a new and better deal (just like cell phones). From what you say, you're not looking at an amazing deal that you just can't pass on, so wait for it. Think long term. I hope this helps.