Hello BP family,I recently purchased a home with an FHA 203K loan.

They were able to offer a 1st position loan based off the property and income, and the seller was allowed to offer financing, but in a 2nd position.  

The idea is that I would be the one to find the deals and obtaining the loans.

At a very high level a property has a “tax basis”, once you exceed that basis you are subject to taxes, whether that happens when sold and paid in full or paid over timeThe loan provided by seller financing is like any type of loan where the interest is taxed at ordinary income rates.

One issue i will run into is funding since alot of dscr loans do not fund in rural areas. 

You can close in a DSCR loan in your LLC with a similar down payment as conventional. 

Now use the same $100k to buy a $500k house with a loan, it goes up 10%, you have $50k!!!

I’m getting DSCR loan quotes for around 8%.

I guess my question is, how do I get a loan for a flip when I don't have 2 years of pay stubs.  

I know a few agents, a few contractors, and a real estate attorney, but need to build a relationship with a good lender who can do competitive DSCR and rehab loans.