Here are a couple things to note that most people don't take into consideration.
fha does allow 1099 and self employed but require minimum of 2 years of tax returns for your business. no exceptions. same with usda and first time home buyer federal backed loans.
CALL A BROKER AND HAVE A CONVERSTION!!!
if you have continuous deposits in your bank account from a side hustle you can get non qm loans but understand theyre at around 9-11% apr right now and dont really make sense for turn key investments at the moment.
types of nonqm loans are:
portfolio loans 3-5 properties minimum if you find on ehtat really does do this lmk.. its posted on every lenders website but they don't really offer it... its not real imo lol....
bank statement loans
Debt service coverage ration loans youtube this its super complicated honestly...
sba loans
I'd recommend two options for you.
1) flip 3 buy 1 repeat in your back yard where you live.
A) you can find great contractors by hanging out at lowes and homedepot around 6-7 am near the prodesks. you can also ask the prodesk who comes in often and see if they have the gc's business card. you can also reach out to a local property mananger and ask for recommendations.
B) call a hardmoney loan broker and ask questions about the types of loans they offer. learn things like cost of points upfront, construction loans and their draw fees, and look into the extension and other clauses in a recession most hm lenders can simply call the note due if its after the extension period.
2) if you want to build a rental portfolio
A) figure out how/where you want to buy/live and house hack in one of the units... 4 plexs are the best in my personal opinion. this will allow you to learn the market you live in but also have reduced cost in "rent" and gain experiences in handling property management if you do it yourself or watch what your pm does. do this 1 to 2 times a year you can get more then one federally backed loan a year the legal stipulation is that you have to have a reason to move out away from where you live at least 100 miles away. being in the military I move multiple times a year and have bought 2 homes in a year with my wife... because of orders and stuff the lender just wanted an explanation during the approval process. id personally try to get 5-10 under my belt with as many government backed loans as possible until I figured it out then would do something like get a portfolio loan for all the properties and use my cash as a means to do something like BRRRR or simply purchase with 10-20 percent down then get helocs and repeat. its slower but safe!!!
B) do a strategy like BRRRR and or out of state investing.... this is incredibly risky and difficult. before you do this I'd recommend calling a pm in the area you want to invest in and ask things like whats your property management fee structure like... some states industry standard is 10% depending on asset type. others charge first month rent for new leases and new lease fees. Indianapolis, IN after lease fees average 12-15% of gross rents on a rental property to manage... I learned this the hard way.... it kills most investment opportunities... id also look into investing capital with your capital as a short term loan for an experienced partner in another state. then bombard them with questions. and ask why they do everything....
