Where best to spend the money from the sell of my home.

[Michael Soukup]

So I recently just sold my home after a divorce. I plan on buying a condo that I will later rent out. I am wondering if I used some of the money I received from the sell to pay off my debt if that would be financially wise vs using it towards the purchase of my next place? I will be taking a residential loan from my TSP since by my calculations that would save me a lot of money on interest and give me good equity. Also that will give me a lower payment which will allow me to have bigger profit from rent. I know if I use all the money towards the purchase then I won't be paying any taxes. And advice is appreciated.