Hello Everybody!
My name is Drew Roqué, 22 years old, and I am aspiring to be financially independent! I graduated from a Maritime Academy with a 3rd Mate’s License and I am now working for a shipping company. To make a long story short, I am able to pay off all my student loans ($30,000) in about 4 months. I was wondering if I would be better off paying off my student loan as soon as I can... or pay the monthly payments on them and instead use the saved money to conduct my first BRRRR method.
Let me know what you think and why! Thanks!
@Drew A Roque - I'm going against the recommendations above and say invest in your first BRRRR. Yes, it's good to rid of debt, however educational debt is often not considered 'bad' debt. That's different than a racked up credit card. Imagine completing a BRRRR that pays your monthly student loan obligation, then imagine a 2nd BRRRR that enables you to double your monthly obligation....before long it's paid off. Meanwhile you have 2 properties (likely more) that have mortgages being paid off by others.
Another option is to do a few BRRRR, then pay off the student loans lump sum. The difference is that though you'll be $30k lighter in either scenario, one has you dancing in your bellbottoms because you own 2 cash-flowing properties, the other doesn't.