To pay, or not to pay?

[Karlo Alamo]

Hello friends!

I recently lost my job due to COVID, and I had a work history with a good income for 4 years. Now that I decided to chase what I really want which is Rental Investment, I've come across this roadblock. My credit is poor, I have closed credit cards debt that equal $11,580 (from when I made bad choices), however, I keep my current 3 credit cards with no balance and my only monthly debt is rent, food, and utilities and necessities ($1700). No loans or car loans. I was planning on keeping my savings account ($19,000 on 401k) to cover the downpayment in 6 months after I get a job and steady income again, and at the same time pay down my debt with the cashflow from that job. However, if I do that based on a $17 an hr job, my debt to income ration will still be over 50% after 6 months since my credit cards limits are so low. So what I'm thinking is withdraw $10,000 to pay down debt right now, and save my extra cashflow for the downpayment instead. 

Any ideas from the experts? 

Thank you!