Refinancing 1031 w/ no 1040 income

[Bernard Golden]

Am planning a ~$1M 1031 next year. Purchasing in markets in which $100K-$125K is target to achieve cash flow. Plan is to purchase all cash to simplify 1031 exchange paperwork, but wish to then finance at 75% to redeploy capital to additional properties.

Will not have 1040 income next year. In discussing this plan with someone involved in real estate, he stated the lack of 1040 income would require three years of financial records on properties being financed, i.e., so that they could justify financing on their own income rather than via personal 1040 income. He may be thinking of the most conservative financing approach, though, e.g., Fannie/Freddie. That would significantly delay execution of full plan, so want to understand potential financing options with less than three years of financial returns, if possible.

If you have experience financing a portfolio of properties absent 1040 income or are a lender who addresses financing with shorter duration of rental finance history, would love to get your perspective. If you're willing to connect for a discussion, please DM me to coordinate a Zoom call.

Many thanks.