Debt or no Debt

[Josh Gevedon]

 So I feel like when my wife and I are ready to make our first investment happen that I will have this thought in the back of my head like "what am I doing? I still have debt on 2 vehicles and a mortgage."

How do you overcome this or should we wait until the vehicles are paid for?

By the way we are looking to flip a property when this time comes.

[Randy E.]

Don't wait until you pay off your two vehicles.  If you're serious about investing in Real Estate and doing it with a sound financial footing, there is another way to start with no automobile debt.

Sell the two cars before the end of July.  Buy two cheaper vehicles, for around $3K-$5k each.  Buy your investment property.  Maybe buy a second one.  Then rethink your financial situation and see if you are in a better position to afford two high monthly car payments.

Good luck.

For what it's worth, I have two vehicles, both 2004 models, and zero car debt. I also have three SFR for income properties that I own with no debt, I'm a part-owner in a REI group, and I plan to purchase two more SFR by the middle of this fall.

You have to prioritize.  You can wait until your current auto loans are paid off.  Is that one year?  Two years?  Four years?  Just realize you're crippling your ability to invest in Real Estate.  Then again, maybe your income is so great that you can overcome high car payments and begin investing in RE immediately.  I have to keep reminding myself that not everyone is in the same boat as I was/am.