Originally posted by @Alma Mills:
I understand your challenge, I live in an expensive market, I am also self employed. I have helped a friend who was in your same situation writing off lots on taxes. He was able to change his financial future by reducing the write offs and after a year or two he got a loan and bought his first house. It seems counter productive, but one year of paying more taxes may allow you to get 90% financing on a property. In my market, that could be easily $900,000 that a bank is giving you to invest in Real Estate. Way more than your gonna spend on taxes.
Of course, you could also go to bridge lenders or hard money folks but if you want cheaper money it would be better to be able to qualify for traditional financing.
This is what all the traditional lenders said. Eat the tax bill for two years and then come back to us. This really grinds my gears...1. I'm legally entitled to those deductions 2. I'm not thrilled with how our tax money is being throw around right now 3. I have no guarantee that after two years I'll get a loan.
That's what landed me here. I've played by all the bank's rules (high credit, high down payment, long relationship)...I'm all for not using them in the future.
