All Forum Posts by: Drew Hollowell

@Thomas S., I've read several articles and watched videos on why paying off mortgages early is a bad investment because your primary residence has no income potential and because other investments have a higher ROI than 3.25% in my case. However, that argument assumes that property would be my primary residence and not made into a rental that would produce passive income. Please forgive me if this logic doesn't be make sense. I'm honestly just starting to try to make sense of my financial options.

@Brent Coombs, I am banking on the Public Seevice Loan Repayment Program. I would have to fulfill a service requirement with the state of Oklahoma or another qualifying government or non-profit agency for 10 yrs while paying minimum monthly payments on my student loans. In my case, it’s about 100 dollars a month with an income based repayment plan. I’m 26 and have nearly achieved the highest income potential in my field so I don’t believe I would have to worry about getting removed from an income based repayment plan for making too much money. I went to a private school (big mistake) and owe just under 100,000 in student debts. So going this route would definitely be the cheapest option for me. I.e. paying 12000 it so versus 100000 + an average 6-7 percent interest. And I agree with the rest of the group as well. Thanks. 

@Account Closed is right though. Thanks for the input gentleman. 

Thanks Anthony. I appreciate the reply. 

I have researched a number of real estate investing strategies and like the idea of having high cash flow with little debt and little to no risk - (who wouldn’t!) to achieve this, I am considering paying off my current primary residence mortgage at an accelerated rate, renting it out, and then repeating this process. I would progressively “snowball” each property’s monthly rent income into my primary residence’s mortgage payment until it is paid off and ready to make me more passive income as a rental property. Essentially, I would like to be a buy and hold invester without having to get a loan for an investment property. I realize basically all the return on my investments until I was satisfied with the amount of passive income acquired would be tied up in the home’s equity, but the convential way of using mortgages for investment properties just would not work for me and is too risky for me. I have extremely high student loans and would likely never be approved for these mortgages with their stringent requirements. Is this strategy a good idea? Or are there other suggestions that would achieve my goals? Am I overlooking an opportunity cost?