All Forum Posts by: Account Closed

To speak simplistically.. if getting out of debt is the goal, you need to maximize monthly cash flow right now. As you get out of debt, your goal will likely become to maximize long-term gains. Right? Because once you're out of debt, the income from your "job" puts a whole lot more money in your pocket every month, instead of paying debtors! So right now, I would look for investments that have a high monthly return, but smaller long term return. Usually that's found in lower value properties. You can rent a $50K house for $800-$1000 but a $150K house for $1500. But that $150K house will increase in value quicker -- if they go up 10% over 5 years, the $50K house made $5K, while the $150K house made $15K. 

My first few properties (6 years ago) were $20-$50K, and rented for $500-$800 a month. At the time, I had much lower income. So I used those rents to pay down student loan and dumb credit card debt I racked up. Now I'm at the point where those rentals are almost paid off (they were paid aggressively after debt paid down). I'll sell those, and buy a longer-term investment as monthly cash flow isn't as important any longer because I have very little debt.