Buying vs paying off student loan

[Bruce H.]

hi,

Long time reader, first time writer. I'm a 41 year old white collar employee that still has some student debt. Over the last 10 years my wife and I have bought, fixed up, and rented out 4 small houses. We made a few mistakes along the way, but are now wiser for it. Last house I bought was a 3/1 1/2 for $46,200 that I've put $5,000 in. I bought with $10,000 of my money and a line of credit for the rest from the bank. Rental comps are $750-$800 per month. I'm paying 4.25 variable on the loan. Taxes are $600/year, insurance is $950.

Now, my question. I'm getting a bonus at work. Do I use it to buy another place like this that will likely be cash flow positive with a good return on equity (but likely no appreciation), or do the cautious thing and pay off my student loan debt or the line if credit on this house. Between the other 4 houses we only have 3 mortgages and are cash flow positive about $700/ month from them. Student loan is subsidized at 5%/year. Thanks,

bhough