Paying off debt vs. investing in real estate

[Philip Abbey]

Hey everyone,

I am wondering if it makes more sense to pay off existing debt first such as student loans credit card and car debt, or to save up instead to put a down payment on a rental property to bring in passive income.

If I was to go to pay off the debt first it would probably take around a year and a half to two years to do so.

I didn’t know if anyone has had experience already with going about either one of these routes that could give some insight into what is better.

Thanks!

[Bob Woelfel]

@Philip Abbey I would strongly suggest you pay off any debt you have before investing...particularly if you have credit card debt or more than one kind of debt like CC, student loan and car.  You need to get yourself in better shape with your personal finances before you jump into something else.  People can talk about returns and highest and best use of money, etc, but rarely are your paper returns the same as your actual returns at the end of the year....especially if this would be your first deal.  Nobody I've ever talked to has regretted paying off or getting out of debt.  Use the time it takes you to pay everything off as your education and learning the market period.  That way when you are debt free and ready to jump in you will know what a good deal looks like.  Best of luck.