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Updated over 8 years ago on . Most recent reply

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41
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8
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Daniel Lehman
  • Lockport, NY
8
Votes |
41
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Pay off car loan or buy first rental?

Daniel Lehman
  • Lockport, NY
Posted

So I have a car loan with about 4 years left. The interest rate is at 24%. I have been building my credit up and I'm around 700 now but when I tried for a refi i was denied. Should I pay off my car loan first before I pursue getting my first rental with a VA loan? It seems to mathematically make sense that I payoff the loan first because of the high interest rate but if someone has a strong argument for acquiring my first property then i'm all ears!

Most Popular Reply

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2,953
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4,475
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Alexander Felice
  • Guy with Great Hair
  • Austin, TX
4,475
Votes |
2,953
Posts
Alexander Felice
  • Guy with Great Hair
  • Austin, TX
Replied

Pay the difference between what it's worth, and what you owe. Then sell the car, buy a $1500 beater, the FLOURISH.

I drive such a beater that when I went to leave my last closing, where I paid cash for a house, my truck wouldn't start and I was out front of the law office with the hood popped trying to finagle the thing to start.

cars will always lose 100% of their value, pay as little as you can for one.

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