New to real estate but have student loans what should I do?

4 Replies

@Stan Kates , a lot of what I have experienced has been around what financing you're eligible for. I would first take a look at mortgage options using FHA or VA if you're eligible. If you don't have the income level for that you can search for seller financing options on a multiunit but they are hard to find. I never got particularly creative when I was new at financing options. I did my first deal with a mountain of debt and I was making ~45k salary. I got into a 3 unit building which I purchased at about market value but it allowed me to live there for free and begin collecting experience managing a rental property which banks like to see for future rental purchases. If you house hack if makes your debt to income way better and it makes traditional financing options way easier on your second deal.

It depends on what type of investing you want to do and the interest rate on your student loans. My gut says pay of the student loans as it is a guaranteed return and may need to be done anyway if you are hoping to qualify for a traditional loan to house hack or get into rentals.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you