Updated over 10 years ago on . Most recent reply
Pay back student loans or flip a house?
Hi all,
I have a hypothetical question for you all. If you were a 20-something who was fresh out of college and buried in student loans (oh the perks of being young, not). You managed to save up some pretty decent money from your first job, say $20k. Would you use this money to pay off your loans or invest in real estate, specifically flipping a house?
Thanks for your input in advance!
Vi L.
Most Popular Reply
A key factor I don't see mentioned in this thread is the interest rate of your student debt. That is a very important piece of the puzzle and has an impact on the choice. If that rate is lower than what you can reasonably gain from the investment if the savings, invest. If it us higher, pay off the debt. Simple as that.