Thanks, George Yes, it's taxed as normal income not self employed income like the flippers profit is taxed.

Hi all,I had saved up about 50K for a downpayment and have approx. 75K in other investments as reserves but made the mistake of switching my employment to all self-employed last year and I was denied a loan because I can't prove current income till I file my 2016 taxes.

I've had a really good response from FB groups for neighborhoods and area employers too.

@Jonathan ThompsonAnother item to keep in mind is that all of your self employment income from all sources can be aggregated for purposes of contributing to the Solo 401k.Here is an except from an article written by Calcpa.orgWhen a self-employed individual maintains more than one trade or business, the questionarises as to whether the limit is based on the sum of earned income or loss from all trades orbusinesses under common control [as defined in IRC 414( c)) as modified by IRC 415(h)], or ifonly the trade or business maintaining the plan being tested is used.For purposes of the IRC 415limit, earned income for the self-employed individual is based on the sum of the earned incomefrom all the controlled trades or businesses, regardless of whether the related employer maintainsa qualified plan [Reg. 1.415-2(d)(6)].EXAMPLE: Andy, a sole proprietor, operates a law practice as a sole proprietorand has $100,000 of self-employment income from such practice for 2008 (prior tothe reduction for one-half of self-employment tax).

It sounds like we will just employ a good real estate attorney to handle things as my office does not work in Indiana. 

@Don Konipol thanks don I have employed this strategy quite a bit post Dodd frank.  

Finally, in their application, ask for landlord references and their employer's phone number to verify that they work there.If you need a tenant screening service recommendation, please feel free to reach out directly through personal message!

We just registered an LLC in the same state as our properties.As I understood from a conversation I had with a CPA this morning, UNDER the LLC structure, if the company has more than 1 partner, you can opt for Partnership LLC or S Corp.As an S Corp under the LLC, you can choose to declare whatever amount you want as self-employment tax, where as the Partnership LLC, requires all partners to pay full self-employment based on your shares of the company.

The data can be helpful in getting to a shortlist... then you can dig in to the detail of a handful of markets, e.g. check landlord friendliness of the state, research what the employer base looks like in city, skim news headlines for top issues for the area (school performance?

Also I would not buy a house with your family even when you are employed.