Typically they are going to look at what the property generates in net income and then want it to cover the loan plus something like 20% more.

My interest in real estate has definitely grown over the years, and my need to generate passive income has definitely grown along with it.

My goal is to supplement my income as I work to become financially free and eventually quit my W2 job. 

Renting properties is like building a sandcastle, providing steady income but requiring constant upkeep and attention.Finally, investing in land is like planting a seed, offering the potential for big future growth, but requiring patience and a long-term vision.No matter which playground you choose, remember, the key is to wear your explorer hat, learn the rules, and have fun while building your financial future!

Some common metrics measured are listed below:Credit score: a higher credit score indicates a lower risk for the lender.Income: a borrower’s employment history, income stability, and debt-to-income ratio are evaluated to determine their ability to repay a loan.

You might be right about the inconsistency in income and that could possibly impact your ability to qualify. 

So if you make 118.18k in taxable income, you only need to pay tax on 100k. 

The firm I worked with in the past charged me massive fees, largely because we were higher income and they didn't back it up with value.

However, an essential exception emerged in the 1990s, allowing specific rental income to be categorized as non-passive.

A Tribute to Julio Gonzalez @EngineeredTaxDear BiggerPockets Community,As we traverse the intricate landscape of real estate investment, it is imperative to delve into the profound significance of proof of income, specifically the last two years of income tax returns, as mandated by lenders.