For Conventional, you can only use 75% of the gross rent until you have Sched E history for the rental for a net rental income analysis. 

If you want to close with cash, it sounds like youre going to have to liquidate your collateral or borrow against it, which will likely be more expensive that a mortgage.

Quote from @Derrick E.: Really depends on what they are looking for as well as long term plans.

@Steven Nguyen            Your first step is to liquidate some of your Crypto so you have liquid funds to contribute to the deal.

Hi Paige, yes I have, if he has experience and liquidity that should be no problem.

Much better as a short term acquisition strategy for flips IMO but always a high-risk strategy that should not be practiced by anyone who doesn't have the liquid capital to pay off the loan if needed.

So, by transferring income from a rental schedule E to a business schedule C you're creating a significant extra tax.

My current agent suggested if it made sense financially, to do some rehab work to get the properties rent-ready, but I do not have the liquid funds to do so and sell these as-is.

When you are going through the approval process- we do request liquidity or proof of funds.

Selling gets a tax free gain and allows you to be more liquid; keeping it allows you to have once in a lifetime cheap debt and have that leverage on an appreciating asset.