Pay off student loans?

5 Replies

I have been torn which direction to go in regards to what to do with my money. Here is my scenario, do I pay off my wife and myself's student loans (50k @ 6-7%) or do I use that money and buy another rental for around 160-170 new construction that rents for $1450 cash flowing 400-500? 

I'd go for the cashflow if the loan payments are manageable on your current salary (assuming they are as you've managed to save enough to pay them off).  Use cashflow to bolster your savings and get the next one after that.

$400/mo on a 50k investment is a 9.6% return.

Originally posted by @Drew Mylenbusch :

I have been torn which direction to go in regards to what to do with my money. Here is my scenario, do I pay off my wife and myself's student loans (50k @ 6-7%) or do I use that money and buy another rental for around 160-170 new construction that rents for $1450 cash flowing 400-500? 

 I would go after the investment. Definitely would look for a better deal than 160-170 new construction renting for $1450. 

What happens when you can not receive the rent and needing money for both loan and mortgage?  I imagine your credit score will be better paying off one and move to the next project.