Pay debt off before acquiring a mortgage ?????

[Ali Khweiss]

I’ve been sticking to eliminating all debt before committing to real estate.

[Joe Villeneuve]

Originally posted by @Ali Khweiss:

@Joe Villeneuve only because I feel like taking on a mortgage will be my ultimate biggest debt so why not eliminate any current debt I have now!

 Once you spend you cash on your debt, that money is gone.  When you use it to invest with, you can use the cash flow from the investment to pay off your personal debt.  After your debt is paid off, that cash flow keeps coming.  Without the investment income coming in, the source of funds to pay your debt is you.  With an investment property, that source of funds is the property...which keeps paying you, over and over...including paying you back for the funds you used as the DP on that property.