Lenders like income streams that have two years of history; if you're a W2 employee, you need two years of employment in the same field, and if you're self-employed, you need a business that demonstrates the same level of income for two years.If you buy some property for cashflow, a lender probably won't count the income until you've owned the property for two years.

But it's a tough market right now.

@Lorinda Fileds1099 income reported on a schedule C would generally make you eligible for a Solo 401k plan as long as you do not have any non-owner employees.

Might be tough to find that money for a down payment, but it makes the property perform better in the long run.The other option is seller financing, which is hard to find in today’s market, but a good option if you can find it.

I have a friend that needs to house an employee for about a year. 

Expansive clay can be tough to work with.

Thats a tough spot to be in.

Its tough to pay all of the taxes plus the penalty, why not pay back the loan and take out another larger one?

It is definitely a tough decision on my part.

Good contractors do show up and finish the job, but are slower because they are unable to get employees, and you have to pay for them.