Rookie Reply: Should I Invest in Real Estate or Pay Off Student Loans?
This week’s question comes from Ben, who actually direct messaged Ashley and asked her a pretty personal question. Ben is asking: As someone with student debt, should I start investing in rentals or wait until I’ve paid off my student loans?
It goes without saying that this is a very personal question, especially since it has to do with personal (not business related) debt. Everyone is different in their willingness to take on debt. While some people don’t mind having lots of low interest debt, others want to get rid of it as fast as possible. Both Tony and Ashley have had student loans while building a rental portfolio, so they’ve had to ask themselves this question as well.
Here are some suggestions:
Make sure you pay off all high-interest debt first before you start investing
Ask yourself whether or not the future cash flow can help you pay off your debts
Never put yourself in a position where you’ll feel anxious while investing
And more in the episode…
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Links from the Show
Check the full show notes here: https://www.biggerpockets.com/rookie94