Am I over leveraged?
I've come to a fork in the road and I need some guidance!!
I currently have a lot of personal debt and my goal is to become a full time buy and hold investor. I don't know if I should aggressively pay down my debt so that I can obtain conventional financing, or if I should save my money and use it as a down payment with creative financing methods. Two creative financing methods I would like to explore are partnerships and seller financing. In a partnership, the partner would have to fully carry the loan from a debt to income perspective.
To the numbers.....
Personal Debt:
Student Loans - 87k
Car Loan - 24k
Mortgages:
Rental Property - Value: 205k - Mortgage: 195k - Equity: 10k
Personal Residence - Value: 160k: - Mortgage: 110k - Equity: 50k
I bought my personal residence with the intention of renting it out when I'm done renovating. The renovation is nearly complete and I have put a lot of sweat equity into the project. It will cash flow nicely when I move out.
What should I do? Should I pay off personal debt as quickly as possible to free up my debt to income ratio to obtain conventional financing? Or should I explore creative financing outlets?