I’m 27 working a W2 job, but looking to be self employed within 2-3 years.

As you start building your investment portfolio, there's a few things I'd keep in mind: Income: For conventional loans, it is important to have stable salaried employment and to avoid employment gaps.

In this case I would only be borrowing 40% of value of the property because the rest would be funded by the seller.I do also have 35K in a rolled over IRA account from a previous employer. 

I am a self employed contractor (sole proprietor).

@Roy Oliphant I will be interested in counties with the right investment dynamics of population, employment and growth prospects.

But I can't think of any large employers...Round Rock has Dell, Emerson, 3 hospitals and the growing education corridor.  

That larger number should reflect the same gross income that the payroll verification should come back at from your employer.

Always be ready for corporate downsize, or for the wind to change direction and your employer tells you you're being transferred to a place you wouldn't want to visit; let alone live.

They are classic bait and switch scams.

But profits are also subject to Self Employment taxes, so there's plusses and minuses to both methods.The issue with taxes is that it is both an art and a science to maximize tax savings and balance other needs and it's really important to sit with a knowledgeable CPA and talk about your specific situation (not your friend's, not somebody else on BP, not your mentor) and have them help you design a tax plan built for you.