I am a Texas RE broker and investor. I wish to do a small ($60-70K) cash out loan on a rented single family home that I bought for cash and is free and clear. I have not filed 2011 income tax. In 2010 I purchased, with cash, several distressed properties and put money into repairs and renovations. I increased my net worth by about $400,000 but manged, with good fore-planning by my accountant, to show a loss of about $20K. In 2009 my official residence was the US Virgin Islands and I did not have to pay US Taxes. My FICAs are all above 700. No negatives on my credit report. My bank is suddenly so unimaginative that they will not consider my increase in net worth but only that my tax return showed a loss. The brokerage pays me a salary beginning this year for the now obvious reason, but the bank wants pay stubs or w-2's for two years. Does anyone know where I can get a loan without being stuck with hard money or a high rate low-doc?

Banks will normally add back in any depreciation expense you have on your rental properties showing on your tax return. They realize its a 'paper cost" and does not really cost you any cash.
If they aren't find a mortgage company/broker that deals with a lot of investors to help you

Look at other local banks that claim to have an interest in community development. Also you may want to consider a HELOC instead of a straight cash-out. Don't feel hemmed in by your bank. Shop others before going the hard money route.So few low-doc options out there now.