Skip to content

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Personal Finance
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

92
Posts
12
Votes
Anthony Hornbeck
  • Engineer
  • Savoy, IL
12
Votes |
92
Posts

Hypothetical - $75k Equity vs $50k Student Loans

Anthony Hornbeck
  • Engineer
  • Savoy, IL
Posted

What would you do in this scenario?

Investment Property with equity of approximately $75k.

Student Loans of approximately $50k   (Overall Effective Interest Rate 5.25%)

Would you sell the property to pay off the loans, or keep the property?

Extra info: The property is self managed in this scenario, but does bring in $700/month cashflow after all expenses, capex & debt service.

Most Popular Reply

User Stats

1,093
Posts
1,059
Votes
Doug P.
  • Investor
  • Kitchener-Waterloo, Ontario
1,059
Votes |
1,093
Posts
Doug P.
  • Investor
  • Kitchener-Waterloo, Ontario
Replied

@Anthony Hornbeck Since it's hypothetical I wouldn't have gone to school and would have no student loan.

Seriously, in my area the property would be appreciating about 5%, plus principal pay down, plus cashflow. So I'd be further ahead keeping the property.

Loading replies...