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We are a two-income family. I'm employed by a company; my spouse is self-employed. We have ample liquid assets. I make a nice salary but not as much to satisfy the 40x rule for the amount of rent we'd likely need to pay. Credit rating excellent; no lateness with current rent payments. When renting from a leasing company vs individual owner, what is the standard required for financial information when one is self-employed?
Owner : I don't believe you can afford my Ferrari?
A: afford?, I'm not the one selling or renting my Ferrari. You so rich, keep it and/or don't whore it out for a few dollars. But I digress. Here is some money to alleviate your fear about my finacial credit worthiness.
> I make a nice salary but not as much to satisfy the 40x rule for the amount of rent we'd likely need to pay
maybe you should consider renting a similar place in a cheaper neighborhood, so you can support the rent on your own wage at a 40x - 50x ratio.
This is America. What the lack of income and money have anything to do with consumption?
Bacon is on sale!!!!! Forget your 5000bmi! Buy buy buy!
Here is the govt sponsored 5% down 30 yr 1% fixed financing to buy all the bacon you want to help the poor pig farmers to buy that new carbine made in China/India/Greece!!!!!!
notadmin - That statement makes no sense. Based on the information the OP provided, the couple is clearly living within their means. Simple example (just making up numbers to make a point) - Company employed spouse makes $50,000/year; self-employed spouse has made $300,000+ for each of the last 3 years. Why should they limit themselves to 40-50x the $50,000 salary. In fact, the way companies lay off people and depending on self-employed spouse's field, self-employed spouse's job may be significantly more secure.
OP - To answer your question - I don't know for the rental market (sorry) but I know Wells Fargo requires two years of tax returns to document self-employment.
If you have ample liquid assets, pay the rent upfront. Otherwise get an accountant letter and tax returns for the self-employed spouse.
Letter from a CPA and/or tax returns.
Leasing company or sponsored units are usually better to deal with than condo owners. With that said, as others have mentioned, a CPA letter should do the trick. Tax return, unless you are comfortable giving a "stranger" all that info in your tax return, is usually an overkill in my opinion. What do you need to see my Sched D, for instance, for a self-employed ? Why do you care how my expense and income matches up ? It's none of your f*k*g business ? :) Here's my income, it verified and legitimate. Go "scratch" something :)
[If you have ample liquid assets, pay the rent upfront.]
It's even more hilarious how things have become so insane in the rental market. Let's say you pay up front half a year's rent to assuage the landlord's paranoia. Do you get a 'break' for giving them your money ahead of time ? Yeah, that's as likely as you can beat Tiger in a 9-hole face-off.
Fact of the matter is, rental price are insane yet renters have no leverage in most negotiation. If I am paying you 1/2 a year's rent in advance, I better be getting a discount! It's your problem, not mind, that you can't earn diddily squat in accruded interest :)
a letter from your CPA is what you need. i can't believe none of these dullards know that, other than Keith.