Should I Go Back To W-2? Or Stick With 1099?

[Jazeel Collins]

Hello , I’m new to real estate and looking to close on my first property by 2022 . Here’s my question .. Should I get back in the workforce as a W-2 employee ? Or should I continue working as a courier where I can accumulate cash faster for my first property .

I previously was let go due to Covid about 4 months ago working as a plumber W-2 making a salary of about 50k after 3 years with this company. Started this delivery job making a salary of about 70k (1099). I’ve had income from this delivery job in the past while working as a plumber during my free time .

So far I have about 25k saved up towards my first property .

[J Zev J.]

@Jazeel Collins - It's much easier for a W-2 earner to get a loan than a 1099 earner. With that said, if you're making substantially more (even after self employment taxes) as a 1099 earner, then it might be worth it to stay a 1099. You can reach out to a credit union and explain your situation and they'll let you know their lending criteria which could help guide you. Also, it wouldn't hurt to talk to some mortgage brokers to get their advice based on your specific situation.