… am ready to buy my 5th property, and my “job” income is at zero, I have maintianed 70k (putting 10k down on each of my 4 previous properties), and my current properties have had all bills paid on time, and have each produced positive cashflow.
The above is not a specific scenario, but generally speaking, what does the mortgage company look at, when helping me finance my next project.
Generally:
I buy cash, fix, rent, en re-mortgage. The lender has also looked at the current rental contract and has looked at two years of income tax returns (just on the first property)…
I’m sure there is other stuff depending on the lender.
Just my experience.
Keith
If you are purchasing the properties through a residential lender they will look at a 2 year history of employment.
So if your “job” is at 0 because you are not currently employed, then they would look at how long you have been investing. The tax returns will show the cash flow of the properties. In addition to the cash flow a lender will allow you to add back in depreciation for qualifying.
What I’ve found is that most investors do not want to show income for qualifying and use stated or no ratio programs.