What Would You Do In This Situation?

Question

What would you do if you had a 680 credit score, 10K in student loan debt (your only debt) that you can't default on again or you'll be sued and $5,800 cash. This is my current situation and I am desperately looking to get into buy & hold rental property. I'm open to doing some flips & wholesaling to raise capital but ultimately I want the passive income that rental property provides. I'm in the analysis paralysis stage and I hate it! WWYD??

Aaron Hunt · Answer

Depends how old you are.

1. Forget about credit score. Doesn't mean much at this point.

2. Get a job (in case you don't have one already).

3. Work your tail off for 3-6 months. Live on cup o' noodles. Cut the cable. Borrow someone's Netflix.

4. Pay off student debt completely.

5. Use income from job to build a down payment.

6. House hack into duplex or 4-plex with 5% down, and rent out the other 1-3 units.

Thomas S. · Answer

Pay off your student loan then start saving to invest.

It is a very spiel straight forward process.

Always remember it takes money to make money.

Quinton Childs · Answer

I really appreciate the feed back guys, I'm 29 and currently working 2 jobs. one I've been on for 8 yrs, the other for 2 yrs so the W2's are consistent. I'm very keen @ budgeting and $ management. I have a 30% savings rate right now as far as my income goes and always looking to increase that. I consistently go to REIA meetings, listen to podcasts, study via books & BP, and currently don't have a mentor. I will seriously take everything you guys mentioned to into consideration and keep you posted. Thanks again and I hope you all continue to do great things!

Ryan Peterson · Answer

Maybe look into getting into real estate in another way.  For instance, I started off as a title agent   for an investor friendly title company, this was great because I learned the ropes of investment transactions, and got paid to do so!  From there I got my real estate license and transitioned into working with a wholesale brokerage.  I met that broker through closing his deals as his title agent. My point is, sounds like you got some some house cleaning to take care of, and this is a way you can make connections, build relationships, and sharpen your skills and knowledge as an investor, all while being able to make a good living and build towards the future that you can already see.  That is what this whole industry is about.

I Wish you the best of luck Quinton.  Go get what's your's!

Travis Rasmussen · Answer

@Quinton Childs

Looks like your kicking butt, I would just echo what @Aaron Hunt said, he laid it out nicely.

Keep killing it.

Krishna Chava · Answer

I would do AirBnB in your situation until you have more money to invest. AirBnB hosting experience is not same as real estate investing experience, but there are parallels in the sense that they are both DIY and teach similar discipline in making decisions and also people skills.

Quinton Childs · Answer

@Linda Moore very awesome advice, my current income is approximately 45K net. And the emergency fund is definitely intact, I keep 2K instead of 1K. Currently doing the debt snowball S/O to Dave Ramsey. I'll try to keep my desperation low but I look at it more so as ambition. I'm a pretty sound decision maker, I appreciate your feedback.

Linda Moore · Answer

I missed how how much income this fella has.  First step is using your Cash to pay down your school loans..  Keep $1,000 for emergency fund.

You say you are desperate to get into the game.  Desperation only leads to bad dealing.

Quinton Childs · Answer

@Jill F. I will check now and find out, Thanks Jill!

What Would You Do In This Situation?

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