Commack, NY · Member since 2013 · 29 posts · 8 votes
Hello all, one of the things i am wondering as I contemplate how to prepare to get involved in the real estate game is getting a mortgage for an investment property while i already have a hefty home mortgage. I live in NY so everything is expensive. My home mortgage is pretty big, and I have student loans that appear as if they will never go away. I also have some credit card debt. Would I be better served looking to attack my student loans before my credit card debt or does it not matter for mortgage application purposes? A strict interest rate analysis would make this issue a no brainer, the credit cards bear heavier interest burdens. A strict emotional analysis would have me attacking the never ending student loans. But I dont know if the analysis changes when considering future investment property. Love to know what you all think, or if I dont make sense.
Investor · Cincinnati, OH · Member since 2010 · 1k+ posts · 928 votes
13y
The credit card balances are the most insidious: high interest rates and damaging to your credit score for borrowing. You should pay them off before worrying about attacking your student loan debt. The student loans are probably not too punitive on your borrowing capacity since the minimum payments are pretty modest typically, and the rates aren't too bad.
You're going to determine if you can conceivably invest on Long Island and make any money. Flipping could work of course, but can't imagine you could hold financed rental property that would cash flow. May need to flip at home, and hold rentals somewhere well "inland".
Commack, NY · Member since 2013 · 29 posts · 8 votes
13y
David Beard,thanks for your insight on the paydown issue. I appreciate it. And with regard to your insight into the othe issue that i did not expressly bring up, you are right though, this is my second biggest dilemma in how to get started is how do i go about doing it when i am on this expensive island. I think ultimately you are right i'm pretty sure the only ones around here making it are the flippers, and I am more of a buy n hold kind of guy. I would do flipping if i had the right qualified team to make it happen, but I dont think i have that at this point.