How to refi out of BRRR without a W2 income

[Samuel S.]

Hey BP folks,

So this has been one of the largest concerns in my mind when it comes to refinancing out of the BRRR strategy.

For instance - say I am only the refinancing portion away from a very successful BRRR, and all the numbers come back great - from the buy, reno, rents, even appraisal.

Even if I have good credit, appraisal comes back great, and the property is rented out, and the income it produces can still cashflow AFTER the loan, will some banks decline loaning on this property if:

1. I do not have a W2 income?  

2. Or if based on my tax returns, some of my currently owned rentals are showing a paper loss (due to the tax advantages etc)?  

3. Or if I do not have 6 months reserves in my bank accts to support all properties?  

4. Or for another reason I am missing?

In a perfect world, if I had good credit, landlord experience, the subject property was rented AND would cashflow well AFTER the refi - how could banks still decline the loan?? (that is if I have have not met the Fannie/Freddie loan max)  

I guess I am just looking for some advice from those who have done this successfully and frequently in the past. I feel like the average Joe wouldn't be able to BRRR their way to financial freedom (even with great success at the buy, reno, rent phases) if they cannot show other income. And in that same breath, for the full time REI who lives off rental income only, and shows paper losses most properties, then the BRRR strategy would never work unless a partner gets involved?

Sorry for the long post.  Just trying to get clarity on this part, and I cant seem to find any info online in regards to this. 

Thanks!!!