Will my student loans hold me back from investing?

[Chandler Colyer]

Hello everyone,

I am a newbie here and am really excited to start diving into real estate investing! I am looking to start using the BRRRR method. I already have capital available for when i am ready to make my first deal. I wanted to know if my student loans will have a big impact on my ability to get the cash out refinances for my rental properties. I currently have $100,000 in student loan debt and my credit is good.

I still have a lot of research to do and have a lot to learn. Any input would be greatly appreciated!

Thanks!

[Patrick Menefee]

@Chandler Colyer weigh your risk appetite, focus on your goals (set them ASAP if you don't have them), and figure out what's the best way to get there. If your DTI is at 25%, financing won't be a problem. So the decision comes down to getting out of debt vs getting invested in RE. Can you get a return on your property greater than the interest on your debt? If so, it may be worth it (with risk due to significant debt). If not, absolutely pay down your debt instead.

The good news is, you can do both. While nothing happens without action, action is better taken if well informed. Maybe the best choice is to spend the next year or 2 working, saving all you can, learning, and developing a network. This slow path may not get you what you want right now, but may be like a snowball and accelerate your growth in the future.

As they say, opinions are like ***holes. Plenty of people will tell you to invest now, an equal amount will tell you pay off debt now. Each person has their own bias based on their experience and risk appetite. Weigh all the options and figure out which one works best for you, but to do that there’s nothing more important than working towards a goal.

Good luck!