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Updated almost 9 years ago on . Most recent reply
looking to invest- Pay off loan or buy rental
In an attempt to make this short i'll give the facts first. I'd like yalls opinion on this since you're much more knowledgeable than I am. I'd like to get into buying rental investments in my area. I'd like the price range of 60-85k. I live in a Rural area in PA where its mainly lower income people. I'm moreso asking if now is a good time to start off investing or pay off all my debt ( car note) before taking on the challenge. Once i'm home I plan on attending a real estate licence course.
I'm 24
I have a car loan out currently owing 29k. (540 a month) (i'm a car enthusiast)
I have around 25k in my bank account currently.
I gross around 65k a year
I have a house I bought at 22 years old for 204,900 with 0 down through a VA loan. I'm deployed and currently renting it out and would like to keep doing that since it's too much home for me. I bought it when I was with my ex expecting our first child.
$204,900.
$1315 Mortgage vs $1400 Rental income. (10% from rental mangement, originally 1550)
I have around $1500 between a student loan and CC.
Credit score of 786
So right now i've bought 4 rental books I plan on reading and learning as much as I can before I go home. I'm currently deployed so I've got nothing better to do in my free time than read and ponder all this. I'd like to go home and spend around 15k down payment on a home with 10k or less on improvements and rent it out. Basically emptying the vast majority of my cash into a single home. Work for the rest of the year and save up enough for a second down payment on a home next year. I'll live with my grandmother during that year to help her out with the house and save as much money as I can.
What are your thoughts on this? Should I pay off my car loan first or spend that on a rental investment and use a portion of that cash flow into my car loan? Just keep paying my car note and save all the cash flow for the next down payment? Looking for advice from just about anyone. I'm open to anything.
I appreciate all the input !