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Updated over 2 years ago on . Most recent reply

Elizabeth Velez's profile image
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Elizabeth Velez
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Elizabeth Velez's profile image
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Elizabeth Velez
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Elizabeth Velez
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Personal Finance

Pay off debt or invest

Elizabeth Velez
Posted

We have about $170k in "bad" debt and our DTR is almost 50%. We are about to get $150k in cash from a business sale. Should we pay off debt or invest? I'm thinking pay off enough debt to get us to 30% DTR then invest in a STR.

This year we have bought 5 small LTR's and are under contract with our first STR. (All with an LLC) We are newbies and trying to get started the right way.

We are working with a financial advisor but I’m looking for other opinions. 

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Scott E.'s profile image
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Scott E.
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  • from Scottsdale, AZ
  • Member since Dec 26, 2010
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Scott E.
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  • from Scottsdale, AZ
  • Member since Dec 26, 2010
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Scott E.
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  • Scottsdale, AZ
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Scott E.
  • Contractor
  • Scottsdale, AZ
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You're overextended right now. Not good.

Pay down as much of that debt as possible with the sale of your business. Then pay down the rest of it with the cash flow from your 6 rental properties.

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