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Updated over 1 year ago,
Recent Grad wanting financial freedom: Pay off debt or House Hack first?
Hi everyone, I'm Kari, I'm 24 and I graduated college last year. I had a bit of a career pivot my first-year post-grad but just started my first $60K marketing job this month. I've known since about half-way through college that I wanted to use real estate to achieve financial freedom as soon as possible, however due to moving to the US as a teenager, I didn't necessarily understand how to approach financing my college education.
Post-grad this puts my debt profile at $27K (4% fixed interest) in federal loans, $96K (7.99% fixed interest) in private loans and $5300 (0% interest) left on a car lease. I plan to refinance my private loans again for a better interest rate, but once federal repayment starts again, I'll pay $1330 per month to my debt. DTI 27% and credit score 746.
In terms of expenses other than debt, I currently live with my parents and have none. This leaves me with a solid $2500 saved per month, and in addition to my side-hustles I'm projected to have ~$15,000 by October 2023 - which is when I plan to move out, and no I can't continue living at home :(
My question is whether I should put the 15K onto my debt, move out and rent, continue to grow my income and save as much as possible OR use the 15K as a down payment, take the next few months to hunt for a house-hack and use the house hack to live "rent-free" which would give me the opportunity to continue paying down large amounts on my student debt. My job is fully remote, wfh and has no location limits, and because financial freedom is my goal, I don't care much where I move as long as I can set myself up financially.
Would appreciate advice since I have a lot of moving pieces and almost too many choices with a remote job!