Invest or Pay off Student Debt?

[Jim D.]

Hey all. I've been reading the forums here for a while and trying to learn about investing in rental properties. Thank you for a lot of great information: I find that reading your discussions can be much more valuable than reading someone's book.

I just graduated with a good, secure job that I've been working for two years, and I would like to buy a house. I am thinking of buying a duplex or triplex as an owner/occupant. It seems to me that the extra income and building of equity would be better use of my money than paying down the principle of my student debt.

I have about $50k in student loans.

What do you guys think? Thanks.

[Paul B.]

I'm coming at this another way than Bryan. I want to know about the properties.

Are they in Rochester? What are the numbers, ballpark? I have relatives in Rochester, and the property taxes there amaze me. Can you make money with a rental?

Frankly, unless your student debt is priced at 24% or higher, I can't conceive of a reason for you to pay your student debt faster and defer buying real estate -- IF the numbers work.

I applaud you for thinking about this now, while you're young. I think someone needs to be shouting this from the rooftops to today's 25-year-olds: Buy rental properties NOW! Just think, you can throw your excess cash flow to the principal and have them paid off when you're 40. Having a few debt-free rental properties sounds like a great way to spend my 40s, 50s, etc...