This is not a one size fits all answer, but bad debt is non-asset based or depreciating assets - , credit cards, medical, buying dumb stuff.Good debt is debt used to make or grow your portfolio. 

How where you able to buy a house w a  cc?

I get what you are saying that hypothetically if you were to buy the land first it would require $330K to take down the land acquisition but it would create a very inefficient capital stack, diminish returns for LP and make the raise more challenging.

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.

We have family teams in place in both markets of Texas & Virginia and source deals on/off market through agent referrals, cold calling motivated sellers and PPL.Well, if you get more deals than you can handle and they’re too good to be true I have a friend in San Antonio that buys properties I might could point you to. 😇 

I wouldn't consider buying real estate if I didn't have $160K cash in hand.

Engage architect/civil engineering - If you are buying land to start development and not just land-banking, I'd engage with an architect immediately.

We could make a decent down payment with the 40k, but due to us having little money left over at the end of the month, I'm worried about buying another deal with minimal cash left over after the down payment and not having two mortgages.

I spent months, no, years, reading books, buying No Money Down cassettes, (Carleton Sheets, anyone?)

Investment Info:Small multi-family (2-4 units) buy & hold investment.