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Updated over 5 years ago on . Most recent reply

User Stats

13
Posts
2
Votes
Wyatt Polk
  • Investor
  • South Jersey
2
Votes |
13
Posts

Pay back Student Loans or Save for First Rental Property ?

Wyatt Polk
  • Investor
  • South Jersey
Posted

Good morning Bigger Pockets Family,

So I currently have $55,000 in student loans averaged out at about a 6% interest rate. I have been paying about $1000 a month to try and get this down fast, while still saving any leftover money for my first down payment for a multifamily my fiance and I want to house hack. I am wondering if there is anyone who could shed light on there experiences with paying loans vs. What is the best strategy you've found success with?  Any advice is  welcome! Thank you all. I can provide more info in needed. 

Thank you yo all! 

  • Wyatt Polk
  • Most Popular Reply

    User Stats

    194
    Posts
    197
    Votes
    Eric Mayer
    • Rental Property Investor
    • Clearwater & Daytona Beach, FL
    197
    Votes |
    194
    Posts
    Eric Mayer
    • Rental Property Investor
    • Clearwater & Daytona Beach, FL
    Replied

    No one has mentioned inflation. Why pay off the $55k now when it will be worth way less than $55k later on? 

    If inflation is at 3%, the bank is essentially only charging you 3% on your loan. I would rather have the student loans and an asset than nothing at all.

    Eric

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