Balancing Non-Mortgage Debt and Saving for the Next Investment

[Brandon Kessler]

Hi, I'm Brandon currently living in San Diego but moving to a new home in Seattle next month. My wife and I are making the move because of a job relocation and decided to buy a new home in Seattle, keep our home here in San Diego, and ultimately rent it out - so we more or less stumbled into real estate investing accidentally. Through that process and general research, I came across this community which has opened my mind to what's possible within this world.

That said, we financed the purchase of our Seattle home in large with a HELOC on our existing home, we also have student loan debt, car loan debt, and are paying off an AC unit as well. My question is, are there any best practices in terms of balancing paying down that debt as opposed to letting those payments ride and saving up for a next investment instead - and how does the current state of the industry play into that?

Thanks so much for any insight in advance!

Brandon

[Sherief Elbassuoni]

@Brandon Kessler, it is a personal preference. Some people like to pay off their debt with the highest interest rate. Some others prefer to start paying the smallest loan first, then go to the one bigger, and so on...

Just keep calculating your Debt to Income, and keep checking your credit score