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Updated almost 6 years ago,
Should I invest into real estate with student loan debt?
Hello All,
My Background:
Age: Early/Mid 20s
Occupation: Information Technology
I moved back home with my parents a year ago, to pay off student loan debt($$$). In the next 3 months i would've paid off $33k+ in loans and would free myself of some loan payments ($220 back in my pocket). In total it would have taken me 14months to pay off 33k. I have more loans to pay off, about another $37k ( $480 monthly payment, already refinanced). My parents are also paying on $27k of loans that i shouldn't have to worry about paying, since they agreed to pay this portion.
My Total Debt 64k (Note: I only have to pay the 37k)
Question/Problem: I want to invest in a buy and hold property but I'm unsure if I should do this at the current time with my debt. I do plan on moving out of my parents home in 2019 (can't take living home too much longer lol, maybe until mid 2019).
Note: I spoke to Dave Ramsey on his show about this months ago and he told me not to buy a home and pay debt (he gave me the "your crazy" talk). In return this made me chop down 33k in 14 months.
My options that I've come up with are
1) Buy a single family home to live in for a year and then rent it out.
2) Buy a multi family live in for one year and move out when its full rented.
3) Move out after my 33k is paid off and rent until my the next 37k is paid off (This will take time).
I'm very fiance driven and also ambitious. I don't want to make any moves without being able to afford the risk. What should I do?