Tied Up Between Goin Back to School or Continue to Invest?

Question

Hello to you all in the BP Community! As you can see by the title of my topic, I am tied up between, continuing my education or continuing to grow my real estate portfolio.

I am 24 years old with Associate’s Degree, annually making 65k. I have been working for about 3 years in a medical related career and from the beginning I knew this wasn’t it for me. As soon as I starting learning more about real estate, I have invtested all my time reading books and doing research, while saving money for a down payment. About 3 months ago, I was able to close up on a property and have my first rental up and running.

Calculating everything, I would able to pay the mortgage within 3 years while working over time/part time to save up for another property. Which is really exciting.

I am a believer of hoping for best but preparing for the worst, that is why I am looking to continue my eduction, to have something a bit more stable.

After much research done, I told myself that if I go back to school, I would shoot for a 4 year STEM degree, possibly Computer Information Systems or Information Technology. However, that would hold up on paying my rental property and saving money for the next rental. It would take me about 4 years to finish school with an estimate of 50k money invested, let alone time. To be honest, school isn’t really for me but if it’s something I have to then I will.

My goal in life is to basically have the means to spend as much time with my family with me being my own boss.

Considering I have somewhat of a base from my 2 year degree, do I continue pursue to build my real estate portfolio (which can be a bit risky if not making the right decisions) or go back to school to feel a bit more secure and stable in the long long run?

I know the decision is ultimately for me to choose but any input is well appreciated!

Caleb Heimsoth · Answer

@Lucy Hernandez. School is only worth it if it gets you a better job that pays more and you can do it with no debt. Otherwise I’d just keep doing what you’re doing

Michael Guzik · Answer

@Lucy Hernandez Money is honestly over rated, happiness is drastically under rated. It sounds like you are super proud of what you have done and investing makes you happy and takes you closer to your dreams. I personally would keep doing what you are doing, live frugally, develop connections and stay involved in real estate. Patience is super key with this though! College should be looked at just like a real estate deal. What is the ROI and COC? If you are dropping 50k on that education I would hope it is giving you a pretty nice size raise.... Then again is that added stress and workload going to cause you to be an absentee owner and kill your dreams for freedom? Don't let short term happiness/vision destroy what you ultimately want. I don't see any problem with continuing down the path you are on unless you seriously need the increase in income. @Caleb Heimsoth said it plain and simple which I like, he is spot on and I agree with him. Good luck and make sure you look at this decision from all angles!

Brian Ellis · Answer

Welcome to BP!

Heres my take.. If you enjoy investing in Real Estate, then continue to do that. School wasn't for me, I lasted a week so take my advice with a grain of salt. BUT, im a firm believer in pursuing things that we are passionate about in life. You are young, and have plenty of time to make mistakes.

If going to school and securing a better job is important to you, then there is nothing wrong with that either. But with that, comes more responsibility and hard work. My guess is eventually your entrepreneurial mind will want to get away from that too.

Rich S. · Answer

It is different for everyone, but I caution you when hearing from real estate investor, that paying for education is a waste. Most REI, use leverage, so the money they use, costs money... but they justify it because it returns immediately... meaning, yes I have to pay $300 in interest, but I am getting $500 back so I am making money. The money you spend for education is like appreciation... you go in with the HOPE that it brings you money at a future date. It is a guarantee, no, but you have a pretty good idea where it will get you. The reality of the professional/corporate world, is those degrees open doors. Right or wrong, if you don't have the degree, some doors in that world will never be open for you. If that door leads to a gig paying you say, $100,000... you now have $35,000 more earning power... which will eventually open doors for you to qualify for more financing and LASTLY, the thing many people don't talk about... is you don't have to change anything and you can REPEAT that. So your earning power is up $35,000 a year OVER and OVER again.

If I were you and guessing on who you are from the short stint you posted. I would keep doing all you can to pay off that first rental... get in a self paced, online school that offers flexibility, keep your W-2 and a couple years down the road, you'll have a paid off rental, a 4 year degree, yes- some student loan debt, but a great foundation to move forward. It isn't always a blast the doors off and get rich quick.... some of the best investors were calculated, started slow and have a foundation that doesn't waver... those are the ones with staying power. They survive the market because they have options. GOOD LUCK... your thoughtful thinking on the topic will serve you well going forward.

Laura Hines · Answer

I agree with everything said above. I have my masters and work as a scientist and my job is just fine, but what I really crave is flexibility. I want to be able to work less and still make the same amount. My husband and I are really happy with our income level right now, but we are living off of 50% of our income in order to purchase more properties. Because I want more flexibility 9 months ago, I thought about going back to school to be a nurse. I could get my degree in 12 months and it would increase my income slightly and be a great long term option. After lots of self scrutiny, I realized the reason I wanted to be a nurse was for a sense of security. Real estate sometimes doesn't feel secure (especially when you are starting out). I wanted to be a nurse because it would provide long term for our family, but not necessarily provide more happiness or add joy to my life. I am so glad I didn't drop the 40k on school for a sense of security for myself.

I would encourage you to really write out what your goals are in life. Or talking with a close friends if you are a verbal processor. If you pictured your perfect life what would it look like? How much would you make? What would you be doing? Then try to make a map for how to get there. Ultimately only you can decide if that includes school or not. Don't be afraid to swim upstream. Good luck!

Lucy Hernandez · Answer

Thanks to everyone for replying back, it’s definitely good to read the responses and see everyone’s perspective in this matter!

Good luck to the rest of you as well !

Tied Up Between Goin Back to School or Continue to Invest?

Tied Up Between Goin Back to School or Continue to Invest?

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