eTyler, without knowing too many details about the two of you, I'd say that you are not ready to buy this or any properties yet.
hakrjak is right. A loan for that amount is not the best deal due to other related costs. It is doable, I just don't know if it is economically savvy.
I can only assume your credit score is less than good. That's why your loan applications are being rejected.
I also assume you don't have any savings, do you?
Also, what has really changed in your life that now allows you to stop increasing the debt?
***********
In you situation I suggest you hunker down, take every penny you get to pay the credit card debt, it should take you less than two years.
Cut the tv cable service, sell your car and buy a cheaper one, do a garage clean up and sell everything on eBay, do a budget and stick to it, use coupons for grocery shopping, buy bulk, reduce the cell phone plan, cut the land line if you don't really use it.
I know this advice sounds like not fastlane (and I am very careful of defining something as fastlane or not because the official definition will be released in MJ's book).
*************
I can only say that you will fly higher if you don't have to carry the debt weight.
And I am also saying that you are not ready to buy the property because it seems you don't have the experience. Starting with a property that needs repairs is harder than it sounds. Are you pretty handy, or will you need to hire workers or a GC to complete the repairs?
Being a landlord requires cash reserves. Ask any of the landlords here.
And time. Lots of time. Maintenance takes up more time than what you can expect.
Selling (flipping) has some other costs (agents, taxes, holding costs, etc). Read JScott's blog about it, that will give you an idea.
Rehabbing also consumes lots of time (ask hakrjak, RussH, JScott, phlgirl --where is she, by the way?). Will you have the time availability to deal with this second job?
**********
Sorry if my advice sounds kind of harsh.
Some call it "tough love"
And, by doing what I'm mentioning, you will learn way more about yourself.
***********************
Trust me, two years (or less, if you can come up with another way of bring cash in meanwhile) pass very quickly. Use that time to learn. Prepare yourself.
How would you like to get paid for learning?
What if you get yourself a part-time job rehabbing properties? That will help bringing a little bit of cash in, but remember, you wouldn't be doing for the money but for the experience.
And what if your girlfriend takes a second job at a real estate company, for the same reason?
That would accomplish both goals, would accelerate your debt elimination, while learning a lot about the investment vehicle you want to follow.
****************
Let me close this large, maybe boring post, by mentioning that SteveO's advice is very solid. Problem is, his advice is just two lines but it is worth a lifetime of knowledge. If Steve would make his advice more reader-friendly you would see that he's telling you that, yes, the idea is great (our investments pay for your debt), but the success depends on the implementation. That's why I am saying "learn while getting rid of the debt". Successfully implementing this plan requires knowledge, practical experience and discipline. Do you have those three already in place?
*****************
Again, all of this is based on my assumptions of your situation: debt, bad credit score, no experience in RE --rehabbing, and no cash reserves. If that is not the case, please ignore all of my BS and this message will auto destroy itself in ten seconds.
hakrjak is right. A loan for that amount is not the best deal due to other related costs. It is doable, I just don't know if it is economically savvy.
I can only assume your credit score is less than good. That's why your loan applications are being rejected.
I also assume you don't have any savings, do you?
Also, what has really changed in your life that now allows you to stop increasing the debt?
***********
In you situation I suggest you hunker down, take every penny you get to pay the credit card debt, it should take you less than two years.
Cut the tv cable service, sell your car and buy a cheaper one, do a garage clean up and sell everything on eBay, do a budget and stick to it, use coupons for grocery shopping, buy bulk, reduce the cell phone plan, cut the land line if you don't really use it.
I know this advice sounds like not fastlane (and I am very careful of defining something as fastlane or not because the official definition will be released in MJ's book).
*************
I can only say that you will fly higher if you don't have to carry the debt weight.
And I am also saying that you are not ready to buy the property because it seems you don't have the experience. Starting with a property that needs repairs is harder than it sounds. Are you pretty handy, or will you need to hire workers or a GC to complete the repairs?
Being a landlord requires cash reserves. Ask any of the landlords here.
And time. Lots of time. Maintenance takes up more time than what you can expect.
Selling (flipping) has some other costs (agents, taxes, holding costs, etc). Read JScott's blog about it, that will give you an idea.
Rehabbing also consumes lots of time (ask hakrjak, RussH, JScott, phlgirl --where is she, by the way?). Will you have the time availability to deal with this second job?
**********
Sorry if my advice sounds kind of harsh.
Some call it "tough love"
And, by doing what I'm mentioning, you will learn way more about yourself.
***********************
Trust me, two years (or less, if you can come up with another way of bring cash in meanwhile) pass very quickly. Use that time to learn. Prepare yourself.
How would you like to get paid for learning?
What if you get yourself a part-time job rehabbing properties? That will help bringing a little bit of cash in, but remember, you wouldn't be doing for the money but for the experience.
And what if your girlfriend takes a second job at a real estate company, for the same reason?
That would accomplish both goals, would accelerate your debt elimination, while learning a lot about the investment vehicle you want to follow.
****************
Let me close this large, maybe boring post, by mentioning that SteveO's advice is very solid. Problem is, his advice is just two lines but it is worth a lifetime of knowledge. If Steve would make his advice more reader-friendly you would see that he's telling you that, yes, the idea is great (our investments pay for your debt), but the success depends on the implementation. That's why I am saying "learn while getting rid of the debt". Successfully implementing this plan requires knowledge, practical experience and discipline. Do you have those three already in place?
*****************
Again, all of this is based on my assumptions of your situation: debt, bad credit score, no experience in RE --rehabbing, and no cash reserves. If that is not the case, please ignore all of my BS and this message will auto destroy itself in ten seconds.