Question on what my first move should be
So my situation is I just started Door Dashing full time this year in January. Which means I can't get any of your standard refinance loans because I get a 1099 as a basic business owner and I don't have enough time in to prove my income. My plan was to refi my house so I can have some capital to buy my first rental and do the BRRRR method but I wasn't approved for any loans. So my question is should I save my money for the next year and a half or should I consolidate my debt and then save for my first property and how much should I save? My debt is 105k and I will probably make between 50k-60k a year.
You can find plenty of people willing to tickle your ears and tell you what you want to hear, but the correct answer is that you need to pay off your debt before you think of investing in real estate. If you don't have complete control of your personal finances, you won't have complete control of your investments.
IMO (IANAL, a CPA, or personal finance consultant..I do not even play one on TV)....
can you clarify if that 105K debt is the mortgage on your house, or something else (CC, student loan, note from your bookie)?
if it's the home mortgage, then you aren't that under water and maybe there's near-term options. if it's any other kind of debt then Nathan's right - the rate on that is probably at least as high as the IRR you'll get from RE, paying it off is 0 risk, and it'll allow you to then qualify for less expensive financing options.
My debts are mortgage 66k, car loan 29k, personal loan, 7.8k, and a credit card at 1.6k
Quote from @Clint Vonburg:
My debts are mortgage 66k, car loan 29k, personal loan, 7.8k, and a credit card at 1.6k
OK - so, something of a mix. FWIW, I'd pay off that CC and personal loan before I went and did anything else. make the min to both + whatever else you can to which ever one is the higher rate. Once it's paid off, send all that you were paying to the pair of them to the one that remains, till it's paid off. Usual snowball stuff.
That is a LOT of car loan for someone in your situation. Like, downpayment-on-rental-property-in-many-parts-of-the-US sized car loan. Some people would probably suggest you sell the car and get out of it, but there's a loss involved in doing so, having a car you like can be a good qualty-of-life issue, and reliable transport is important, esp since you now drive for a living. so maybe it is what it is.
By the time you get the 2 high rate loans paid off, maybe you'll have enough time at DD to qualify - you'll definitely be a better candidate. I'd do that before I took on something more involved and leveraged like REI. fwiw.