Question on what my first move should be

[Clint Vonburg]

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.

[Andrew C.]

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.