Should I get a rental if in debt

[Brendon Seiffert]

Hey Guys

Brand new here I was wondering if you’d be willing to answer a couple questions me and my wife have, about our finances and if we’re in a position to get into real estate.

We feel like we are, but we’ve been doing the Dave Ramsey method for a almost a year now, we’re scheduled to have no credit card debt by end of February 2019.

Our plan was then to move onto my school debt, which is $170 a month, with a balance of approximately $9,000 remaining.

Then onto my wife’s care which is $207 a month and a balance of about $4,500

with this plan we should be debt free by mid-June, maybe may.

Then we were planing on saving for a down payment and purchasing our first multi family property

We both work full time now and make about $106k before taxes.

But now instead of paying off the car and the school debt we’re really considering saving this money and using it for a down payment instead of paying everything off early.

Just curious what your opinion on getting into rentals while still have debt would be.

Thanks

[Dassi Lazar]

Depends how risky you want to be. If your investment will make you more interest than you are paying for debt it technically makes sense to invest. 

I started off taking out a HELOC on my home. I tell this to many of my friends and they can't stomach it. For me it was the only option to building wealth. 15 properties later and own over 2.5 mil worth of properties I am happy with my decision. I have a whole lot more debt that I started but producing some nice cash flow while paying these properties are on a 30 yr mortgage.