Real Estate Investor · Nashville, TN · Member since 2011 · 11 posts · 1 vote
Hey all. I've been reading the forums here for a while and trying to learn about investing in rental properties. Thank you for a lot of great information: I find that reading your discussions can be much more valuable than reading someone's book.
I just graduated with a good, secure job that I've been working for two years, and I would like to buy a house. I am thinking of buying a duplex or triplex as an owner/occupant. It seems to me that the extra income and building of equity would be better use of my money than paying down the principle of my student debt.
Real Estate Investor · Alpharetta, GA · Member since 2010 · 415 posts · 484 votes
15y
I'm coming at this another way than Bryan. I want to know about the properties.
Are they in Rochester? What are the numbers, ballpark? I have relatives in Rochester, and the property taxes there amaze me. Can you make money with a rental?
Frankly, unless your student debt is priced at 24% or higher, I can't conceive of a reason for you to pay your student debt faster and defer buying real estate -- IF the numbers work.
I applaud you for thinking about this now, while you're young. I think someone needs to be shouting this from the rooftops to today's 25-year-olds: Buy rental properties NOW! Just think, you can throw your excess cash flow to the principal and have them paid off when you're 40. Having a few debt-free rental properties sounds like a great way to spend my 40s, 50s, etc...
Real Estate Investor · Alpharetta, GA · Member since 2010 · 415 posts · 484 votes
15y
I'm coming at this another way than Bryan. I want to know about the properties.
Are they in Rochester? What are the numbers, ballpark? I have relatives in Rochester, and the property taxes there amaze me. Can you make money with a rental?
Frankly, unless your student debt is priced at 24% or higher, I can't conceive of a reason for you to pay your student debt faster and defer buying real estate -- IF the numbers work.
I applaud you for thinking about this now, while you're young. I think someone needs to be shouting this from the rooftops to today's 25-year-olds: Buy rental properties NOW! Just think, you can throw your excess cash flow to the principal and have them paid off when you're 40. Having a few debt-free rental properties sounds like a great way to spend my 40s, 50s, etc...
Real Estate Investor · Nashville, TN · Member since 2011 · 11 posts · 1 vote
15y
Thank you for the responses. I think will be better off investing now: I will have the opportunity to make a greater return on the investment than paying off loans, and the sooner I start making mistakes, the sooner I get to learn from them.
Also, Rochester has very stable real estate market.
Real Estate Investor · Lake Worth, FL · Member since 2009 · 263 posts · 92 votes
15y
If you have a solid investment strategy then I would invest and keep paying on the student loans. I still have some at 2.125% and there is no bank anywhere that will lend to me at that amount.
If you have other debt, auto, or credit card I would definitely look at paying those down as the rate is usually high compared to the student loan.