We have a dilemma we are trying to solve for a shy friend "Sally". Sally wants to build her net worth but she owes about $30K in student loans. Sally has $30K in equity in her residence. She inherited 2 rental properties with $30K mortgages on each. She is thinking of using the equity to pay off the $30K student loans. I'm not sure what to tell her.
I'm figuring she could split the $30K equity between the 2 mortgages and let her tenants ($600 rent each) continue to pay off the remaining balance of $15K each. Also, I thought she could use the $30K as down payment on other investment houses.
She is thinking of paying off one house or paying off her student loans.