Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 8 years ago,

User Stats

188
Posts
53
Votes
Tim Porsche
  • Investor
  • Denver, PA
53
Votes |
188
Posts

Effect of Working Less W2 Hours on Debt to Income Ratio

Tim Porsche
  • Investor
  • Denver, PA
Posted

Hi There, I have question for you all that I'd greatly appreciate any feedback on. I currently work full-time and invest in buy and hold rentals on the side. Currently I have three doors. I've toyed with the idea of cutting back to working 3 days per week instead of 5 if the company would allow it and it could be managed feasibly. What I'm trying to figure out is...

1. Will the 40% drop in W2 income make it hard for me to get conventional loans on future rentals?

2. If yes are there any solutions to work around that problem, other than continuing to work full time until I'd have more rental properties and more rental income? 

My plan would be to use those two extra days per week that I would have off to look for, buy, and work on flip projects. I believe that by flipping houses I should be able to AT LEAST replace the income from working two less days at the W2 job. I'd really only need to do one or two flips per year. 

If it matters, I should still be in the green at least $1,000 every month after accounting for all expenses, without flipping any houses, just working 3 days and receiving the current rental income. I'm just trying to figure out if I'd have a tough time getting loans for future rentals if I made the change...any advice\info you can give would be great. Thanks!

Loading replies...