Updated over 2 years ago on . Most recent reply
Student loans or investment property
Together my husband and I have almost $200k in student loans with a significant portion of them being at 6% interest. 53k of that is at 6.8% and 7.2%. We currently live and work in Oregon and are interested in getting into the world of real estate investing. We had been renting our house in Utah, however we didn’t have much of a plan or a good team in place and recently sold it. Not for as much as we had hoped after sitting on the market for more than a few months and a big remodel after some awful tenants but still ended up with a fair amount of cash. We are trying to decide if we should use the money for a down payment on a single family home to use as a rental closer to where we can manage it ourselves or put it toward our student loans. We have no other high interest debt, have a reasonable mortgage on our home in Oregon with a fair amount of equity, 1 car payment with zero % interest and a 4 month safety net in place. Any feedback would be greatly appreciated.
Most Popular Reply
I would call up Dave Ramsey, have a chat, then report back what you find. I'll bring some popcorn for everyone. You have $200k in loans but needed a new car? I'm assuming that because they offer 0% interest on new cars. Most vehicles depreciate the moment you drive it off the lot. It's very clear what you need to do but I don't think this forum post is going to change anything.