Paying off all debts or buy another rental property ?
A. Should I pay off all my debts aka Car Note small student loan credit card debt ?
B. Buy another rental property and use the cash flow to pay down my debts faster ?
What would you do paying off all my debts would increase my credit score and allow me to take out a Heloc and let me save the cashflow from my current rentals and my job for the next deal. I just want to hear from the community and see what’s the best thing to do. I don’t know if this makes a difference but in 2021 I’m going out of the country it would help me a lot if this debt is paid off.
@Jermell Shavers For me, it would depend on what the interest rates are. I'm a big believer in leveraging debt to buy more, but it sounds like the debts bother you, and it would do a lot for your mental well-being to get them off the books. So, for you, I would probably pay them off.
The only thing I have that is high interest is my credit card other than that a car loan is decent I could refinance if I should choose to do it. Its just the thought I could buy another property and use that to pay off my debts and after the debts are gone I would still have the income producing property. but I guess ill just pay off all my debts and live free and clear I don't even have a mortgage anymore so being free and clear would be my best route. Thanks for the advice
Pay off the debt first. I don't like the idea of taking on more debt to pay off other debt. Life happens in between, and in any situation, debt free is the better choice.