Real estate investing with student loan debt? Is it possible?

[Rebecca Arko]

Like many millennials, we have student loan debt. We make a middle class income and practice a smart saving, little spending lifestyle with no other debts. Currently living as tenants in someone else’s house-hack, no mortgage. Is it possible to invest in real estate with student loan debt? Is it smart? Or should we wait until our debts are payed off? Currently 25 and 27 years old. Thoughts?

[Joe Splitrock]

@Rebecca Arko you should be concerned that everyone giving you advice to "go for it", knows NOTHING about your financial situation. 

Here is what you have told us:

Rent: $850

Salary: Lots left over at the end of the month

Student Debt: Like many millennials we have student loan debt

How many of these "investors" would buy a property with such little information? I don't think you are ready to start investing until you can change your way of thinking.

If you were an investor your answers would look more like this:

Rent: $850 currently, lease ends February and I plan to have one duplex under contract, where I plan to live in one half and rent the other. The tenant in the other half will reduce my portion of the payment to $XXX each month so I am saving $XXX per month over my current rent.

Salary: After expenses $XXXX is left over, currently we are saving $XX and putting $XX to loan pay down.

Student Debt: Total debt is $XX,XXXX at X.X% interest rate, payment of $XXX per month. Currently we are paying $XXX extra per month and at this rate it will be paid off by January 1, 2021. Or if we stop paying extra, we can save up $XX,XXX for a down payment in 18 months.

Whether you pay down student debt or invest in rental properties, the first step is taking control of your finances. You don't just "house hack" because some other millennial is doing it. It needs to be part of an actual plan and the math needs to prove it will benefit you. 

Good luck!