Selling home to clear student loan debt?

[Dominic A.]

Hi all, Just joined BP recently after a lot of lurking so hello! I bought my first SFH 3 bed 1 bath this past fall directly from the previous owner. I bought the house for $105k and many comparable homes in the area have gone for $120-135k the past 6 months. I have about $20k in student loan debt and have been throwing around the idea of putting it on the market in the spring in order to give me a clean slate financially speaking. My goal is to freshly start over financially which should help give me some leverage for future investments (Not to mention saving the 6.8% interest on the student loans). I have no problem with finding another home for 60-80k that needs some TLC if I chose to sell. Eventually I would like to buy and flip a few SFH as I'm still young to build up cash and increase my volume. Has anyone gone this route when first starting out? Let's hear it! Cheers

[Joe Fornasiero]

@Dominic A. I would recommend saving up money to pay off your student loans. If you sell your home in the spring you will have to pay taxes on the capital gains since you have been there for less than two years. You will also pay 6% to realtor commission which will eat most of your gains. Student loans are also tax deductible.  I would focus on reducing expenses and saving up money to pay down the student loans as quickly as possible