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How does renting in NYC tend to work for the self employed in regard to the 40x rule?
My wife and I have considered moving to NYC in the past, but I was only making about $40-50k and we knew it just wasn't realistic (let alone being far from a good idea.) Now I'm going on 3 years of self employment (sole proprietor), and about $130k+ shows up in my bank as gross income throughout each year (I'm at $80k YTD so far.) I'm wondering if that can be made to suffice as proof of my income, or if all landlords are always going to want to go based on taxes - which for obvious reasons shows a very low income ($28-34k.) Realistically, if we prioritized living in NYC over investing in the business (I'm at a point where I could do this without terrible consequence) then I could comfortably afford $25-30k for housing, which I realize isn't much but it's enough. The question is - does it matter, or am I just going to hit a brick wall of rejection when asked for tax statements? I could offer a large deposit, several months rent up front, etc to add security to the deal if need be. Also of note is that my credit isn't great - it hovers around 645ish. Rental history is good for what that's worth (however we currently only spend $600/mo on rent in Pittsburgh, so it's not exactly apples to apples.)
Do we stand a chance? Is there room to improve the chance in a non-trendy area with easy enough access to Manhattan (SI, some part of Jersey, etc.) Many thanks!
It really depends on who you're renting from with regards to how much is suffice assurance from the renter. Different requirements for everybody. Your best bet is to rent straight from the owner, forgoing an agent if you are able.
How does renting in NYC tend to work for the self employed in regard to the 40x rule?
My wife and I have considered moving to NYC in the past, but I was only making about $40-50k and we knew it just wasn't realistic (let alone being far from a good idea.) Now I'm going on 3 years of self employment (sole proprietor), and about $130k+ shows up in my bank as gross income throughout each year (I'm at $80k YTD so far.) I'm wondering if that can be made to suffice as proof of my income, or if all landlords are always going to want to go based on taxes - which for obvious reasons shows a very low income ($28-34k.) Realistically, if we prioritized living in NYC over investing in the business (I'm at a point where I could do this without terrible consequence) then I could comfortably afford $25-30k for housing, which I realize isn't much but it's enough. The question is - does it matter, or am I just going to hit a brick wall of rejection when asked for tax statements? I could offer a large deposit, several months rent up front, etc to add security to the deal if need be. Also of note is that my credit isn't great - it hovers around 645ish. Rental history is good for what that's worth (however we currently only spend $600/mo on rent in Pittsburgh, so it's not exactly apples to apples.)
Do we stand a chance? Is there room to improve the chance in a non-trendy area with easy enough access to Manhattan (SI, some part of Jersey, etc.) Many thanks!
Your 1040-Schedule C would be better evidence of your income.
How does renting in NYC tend to work for the self employed in regard to the 40x rule?
My wife and I have considered moving to NYC in the past, but I was only making about $40-50k and we knew it just wasn't realistic (let alone being far from a good idea.) Now I'm going on 3 years of self employment (sole proprietor), and about $130k+ shows up in my bank as gross income throughout each year (I'm at $80k YTD so far.) I'm wondering if that can be made to suffice as proof of my income, or if all landlords are always going to want to go based on taxes - which for obvious reasons shows a very low income ($28-34k.) Realistically, if we prioritized living in NYC over investing in the business (I'm at a point where I could do this without terrible consequence) then I could comfortably afford $25-30k for housing, which I realize isn't much but it's enough. The question is - does it matter, or am I just going to hit a brick wall of rejection when asked for tax statements? I could offer a large deposit, several months rent up front, etc to add security to the deal if need be. Also of note is that my credit isn't great - it hovers around 645ish. Rental history is good for what that's worth (however we currently only spend $600/mo on rent in Pittsburgh, so it's not exactly apples to apples.)
Do we stand a chance? Is there room to improve the chance in a non-trendy area with easy enough access to Manhattan (SI, some part of Jersey, etc.) Many thanks!
Yes you could find a place in a non trendy area. Upper Manhattan, or in a part of Brooklyn or Queens. You might find something in Alphabet City in the Lower East Side.
40 times one month's salary is really mainly for the new buildings that are in trendy areas. If you're careful you could probably find walk up apartments in the UES or the UWS for what you can afford to pay.
They will ask for bank statements and tax returns. What deal you work out will vary with the landlord.
The older buildings will be a lot less picky and easier to get into.
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