Originally posted by @Nick Acquilano:
Like to reach out and get some opinions. I have two multi family cash flowing rentals in Syracuse NY. I have always had trouble getting financed due to my job. I bartend and don’t show much income. I do however make good money. It’s crazy to me that I’d have to go back to a 40 hour a week job and make LESS money just to show I make “more” on paper. Anyone run into this problem? Any tips or ideas? Thanks in advance!
You're going to have to do a couple things and the first one is to claim your tips on your tax returns. The 2nd thing is to make your file look easier for an underwriter by depositing your tips consistently on certain days every month. For example, I would make your cash deposits every Friday or every other Friday so that when you show your bank statements the UW can see steady, consistent deposits. Try to make the same deposits every time or very close to the same. Maybe $250 every week or $500 every 2 weeks. Obviously, you won't be the same every time but don't make a $250 deposit one Friday and then a $1,000 deposit the next. Document your tips as well. This will be more for your CPA but if you keep a record this will look good to an UW as well if they ask for additional verification.
Also, keep in mind that you'll have to show tip income for 2 years to qualify for Fannie loans. This should all be straight forward especially if the units are cash flowing positive income on your Schedule E. The most important thing is to work with a broker or loan officer that has experience calculating rental and tip income.
I hope this helps and have a good one.
