Hypothetical - $75k Equity vs $50k Student Loans

[Anthony Hornbeck]

What would you do in this scenario?

Investment Property with equity of approximately $75k.

Student Loans of approximately $50k   (Overall Effective Interest Rate 5.25%)

Would you sell the property to pay off the loans, or keep the property?

Extra info: The property is self managed in this scenario, but does bring in $700/month cashflow after all expenses, capex & debt service.

[Doug Pretorius]

@Anthony Hornbeck Since it's hypothetical I wouldn't have gone to school and would have no student loan.

Seriously, in my area the property would be appreciating about 5%, plus principal pay down, plus cashflow. So I'd be further ahead keeping the property.