Payoff Student Loan Debt or Use Money for RE Flip?

Payoff Student Loan Debt or Use Money for RE Flip?

Rental Property Investor · Santee, SC · Member since 2019 · 3 posts · 0 votes

Hi All! I have approximately 43,000 left to pay on my student loans and have been paying on these for years. I have negotiated with the company and they will accept a 15% discount if I pay off the balance now. I have around 35,000 saved and am looking to begin property investing and purchase a house to flip. What advice for a newbie to pay off the debt or continue with the payments and go for the flip. This also is my last debt. Thanks in advance for your comments/suggestions!

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  • Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    6y
    Originally posted by @Debi Love-Ballard:

    Hi All! I have approximately 43,000 left to pay on my student loans and have been paying on these for years. I have negotiated with the company and they will accept a 15% discount if I pay off the balance now. I have around 35,000 saved and am looking to begin property investing and purchase a house to flip. What advice for a newbie to pay off the debt or continue with the payments and go for the flip. This also is my last debt. Thanks in advance for your comments/suggestions!

    I would pay off your student loan debt. You are in essence getting a 15% tax free profit by negotiating a discount on the total amount owed. You're going to feel great being debt free and you can build your investing funds next. You can flip any time and from what I've heard, if you break even on your first flip that's considered a win, ie it's very difficult to profit on your first flip. 

  • Rental Property Investor · Santee, SC · Member since 2019 · 3 posts · 0 votes
    6y

    @Brian Gerlach Thank you for your reply! Have been praying about this as well as and have found my answer... To pay if off! Thanks again!

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