Help Real situation!

[Johnoson Crutchfield]

Help, I'm going to give as many details as possible because I'm just getting started and could use some good advice. I currently own 5 properties including my primary. 2 of them I just purchased as bad shape rehabs that I wanted to fix and rent out, using the BRRR strategy. I had no cash so I put all of the repairs and purchases on a 50k loan at 25% and 50k credit cards at 25%. So now I am 100,000 dollars in debt. The properties appraise for 75k and 100k, for a total of 175,000, and my bank just gave me a check for 50k to refi the first property. What do I do now? Do I pay off the high-interest loan, then take the other refi and pay off the credit cards? Do I split up the money in some way, keep the high-interest loans and acquire more properties? I can't help but feel like having the high-interest debt is really risky. I need ideas and feedback. The collective rents from the two properties will be $1600/month.

[Chris Seveney]

Johnoson Crutchfield
Personally I feel your playing with fire on these high interest loans and would recommend they get paid off.