Cash out refi without a job

[Francisco Lara]

Hello BP Community,

Firstly, I wanted to thank everyone on here for sharing your knowledge and support.  

I am very interested in becoming a real estate investor.  So much so that it distracts me from my day job.  I want to quit my day job and throw myself into real estate full time but I feel I will run into a few problems.  The first problem that comes to mind is getting a mortgage without employment. I thought about finding a job that will get me closer to the real estate industry but then I wont have the 2 years with the same employer that lenders are looking for.

I would like to use the BRRRR method and should be able to raise enough money to buy my properties cash. Any advice on getting a cash out refinance without steady income other than the rental income coming from the house I would buy cash? What is the seasoning period and what does that mean for me?

I dont want to quit and find out I have pushed myself back instead of forward.  Any help is greatly appreciated.

Thank you!

[Janelle Carlson]

Hi Francisco,

My husband and I are both self employed and it has been very difficult trying to find lending for our refinances even though we have been self employed for 2 years almost 3. You may be able to find a commercial bank that will lend one of their products to you, but check to see what their minimum loan amount is. We are investing in a town where homes go for anywhere around $50,000-$100,000, but most commercial lenders we have talked to have a minimum loan amount of $75,000. This means we can only buy homes at around $100,000 because they lend 75% of the purchase price which would put us at their loan minimum of $75,000. 

Before doing anything, I would talk to most, if not, all the lenders in the area you are looking to invest in and ask them what their loan minimums are, what their seasoning period is, and how much they lend of the purchase price/appraisal (LTV).

I hope this helps!