Want more Cashflow.. Pay off debts or Use cash for property?
I have about $37,000 worth of debt between student loans and used car payments. My highest rate is 6.5% student loan (tax deductible) the lowest is the car loan at 3%. I want to break into RE investing with my biggest goal being monthly cash flow first, and wealth building for our retirement years (which hopefully would come sooner) second.
I have enough cash to either clear out all my debt or invest in our first property.
Clearing the debt would save us $670 every month. Investing would hopefully generate $300 cashflow but would also come with all the other perks. Otherwise the loans should be gone in about 5-6 years.
Getting the $37,000 back would probably take a year, putting our RE investing on the back burner once again. Or I could take the $300 RE cashflow and apply it to my debts every month adding $3,600 worth of payments.
Trying to balance both financial smarts, cash flow goals, and overall peace of mind.. Being debt free may also make the jump into RE investing a bit less stressful.