Ray Kurek Hey Ray, welcome to Bigger Pockets!
The simple answer to your first question is that starting is the best way to get started! The more complex answer is that it really all depends on what your investment goals and objectives are. For example, if you're looking to replace employment income, rehabbing and flipping properties may be the best way to go. However, if you're looking to build passive streams of income and accumulate wealth long-term, rental properties may be the way to go.
To answer your second question, most lenders, whether they're conventional or hard money lenders, will want you to have two full year's tax returns in your self-employed position before they're willing to count that income towards lending eligibility. But, there are private money lenders out there who may be less stringent with their requirements. What I can tell you for sure is that when it comes to lending, assets conquer all. In other words, if you have a considerable amount of liquid assets, a lender will view you more favorably as a borrower regardless of your income situation / source.
I'm local to Houston, TX and please let us know if we can ever be of further assistance!
- Lyall
