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Updated almost 7 years ago,
Embracing debt at a young age
I'd like to get some opinions on debt. I'm 23 and have 6 figures on school loans, which don't bother me a bit, matter of fact I refinanced them from 12 to 20 years to free up cash for REI (cutting my interest in half) and maine offers great tax breaks with school loans in my line of work.
I plan to house hack a 300k modular 4-plex this fall using an FHA 3.5 down. Adding my new truck into the mix that brings my debt total to around half a million at the age of 24. After I live in the 4-plex for a year I plan to buy a house I'll stay in for 10-15 years and will most likely spend 250k, bringing my total to 750k now at the still young age of 25. I should add I have a 6 figure income to support all this as well. Soon after the house, once I have the funds, I will buy another modular 4-plex, this time with 25% down. So I should be about 1 million in debt around the age of 27.
Some may ask why spend 300k on a new modular but the area I plan to invest in is the out skirts of a college town that's expanding and all my competition is new construction. (not relevant to the debt conversation)
So my question is, am I out of my mind here? I read a great book "the value of debt in build wealth" that changed my way of thinking completely about debt. I am not scared of debt at all, after all, my tenants with be paying it all not me, but I still can't help but think that taking on all that debt and then some before I turn 30 is crazy. I have to imagine though with a lot of the stories I read on here that this isn't necessarily uncommon?