All Forum Posts by: Cliff T.

 Hey @Jim Hiler - can you confirm what the underwriting process is like? Do they require tax returns?

Anyone end up signing up for Groundbreaker.co? How has your experience been and what are you paying each month? Not seeing any pricing on their website for some reason...

What did you decide on @Swetha Ramaiah? I've done Option 1 if that makes a difference. It was the most straightforward to me.

Hi all,

Curious to get your thoughts on the Fitchburg, WI market and what its outlook is as a rental market? I know Madison has extremely low vacancy and seems like Fitchburg is quite similar.

Any nuances to Fitchburg that an out of state investor should be aware of? Is it considered as desirable as Madison?

Thanks @Nicholas Aiola. Is Box 1 typically included in someone's personal DTI calculation? The ordinary income (Box 1) flows to my personal tax return and I'm paying taxes on it, as you mentioned. However, the lender is saying that income can't be counted towards my DTI since it's the business's income and Not my own. Seems odd to me as I can prove the business has the liquidity and funds to disburse to me at any time.

Thanks @Ashish Acharya. Yes, I do already have a W2 from the S-Corp to myself. What you're saying makes sense, but I'm still not clear how the K1 needs to be filled out. Sounds like you are recommending for the business to have less ordinary income, and have the rest listed as a distribution to myself?

@Mark Edler - would that distribution of cash to myself be reflected on the K1? Or are you saying to provide bank statements to the lender to show this?

Can anyone clarify... for your S-Corp's K1, do you retain your profit as ordinary income (Box 1) or distribute everything to yourself (I believe Box 12)? I'm running into a situation where a lender is saying that can only count Box 12, even though I own the S-Corp 100% and any ordinary income is mine.

I'm running my realtor business as an S-Corp while paying myself a W2 salary. I'm trying to see if my accountant filled out my K1 correctly... As it stands, my K1 states a high amount of business ordinary income (Box 1) along with a minimal distribution amount (Box 12).

However, a loan officer recently pointed out that he can't use any of the business ordinary income for my DTI and can only use the Distribution amount. Is that correct? He said the business ordinary income would be used in the case that my S-Corp wanted to take out a loan. The distribution, on the other hand, would be counted as personal income.

Seems a little funny to me as I own the S-Corp 100% and any funds -- business income or distribution -- go directly to me. Any help/guidance would be much appreciated!

Can anyone clarify... for your S-Corp's K1, do you retain your profit as ordinary income (Box 1) or distribute everything to yourself (I believe Box 12)? I'm running into a situation where a lender is saying that can only count Box 12, even though I own the S-Corp 100% and any ordinary income is mine.

@Nicholas Aiola Can you clarify... for your S-Corp's K1, do you retain your profit as ordinary income (Box 1) or distribute everything to yourself (I believe Box 12)? I'm running into a situation where a lender is saying that can only count Box 12, even though I own the S-Corp 100% and any ordinary income is mine.