Hey BP, relatively new to the website. My wife and I currently have one SFH that we are renting (it used to be our primary residence, but I moved for work). We are both 24 and are wanting to put money aside to buy more properties, but were wondering if it would be more prudent to go ahead and pay off all of our debt (except for the mortgage on the rental). The only outside debt we have is a small car note that will be paid off by year end, $11k worth of student loans with 8 years remaining at 4.1%, and $11k on another car note with 35 months remaining at 4%. I think we realistically could have almost all of it pains off by the end of 2020/early 2021. I appreciate the help
I would not be that worried about car or student loan debt with ~4% rates. Save for the downpayment and make sure u have adequate reserves and then I would invest in your 2nd property and just pay down your debt monthly. If it was credit card or personal loan then I would pay it down.
@Dj Grimes How long would it take you to save for another down payment? If it will take a few years, your one car will be paid for and the second almost paid off. I'd save up and just keep paying your debt down as you have been. You'll only have the student loan debt at that point, so your debt to income ratio will be better.
@Theresa Harris given the market i am in and what our strategy is, probably mid next year before we have 25% or so put down on a property.
@Randy Bloch thank you. I appreciate the insight!