You should do that so that you can get the tax savings.If yes, and you plan to start looking for your next investment: keep the money in a money market so that it is liquid for your down payment.If your purchase is going to be > 6 months from now: keep some money liquid, the rest I would put back into the market in low-med risk assets (bonds, large cap, etc).Hope this helps!

that's me :D HELLO LONG ISLAND NEW YORK.$1800 will barely get you out of the red on rentals unless you buy foreclosure (good luck there - hello competition in new york).the market has slooooowweedd down a bit here though, now may be a good time to find a rehab at a deep discount....we just looked at a home that is in DESPERATE need of a facelift...complete sh*t holethey want no less than 295k (as is worth about 275,000 to a regular home buyer - that's in this long island crazy market) this place anywhere else in the country would be worth less than 100k... and in many areas worth less than 40k.

Furthermore, it has renters (I believe they are med students) with lease through the summer.

A little information about me is that I am a 4th yr med student, I paid my whole tuition on my own without any loans that is why there are so many discrepencies in my credit history and thus the low score.

After we fix up and raise rents to med/high end of market we'd profit about $420 at 6.25%. 

Any W-2 income/payments already have the SS/med taxes withheld, and matched by the employer, regardless of annual income.

I have a mortgage and med school loans so I saw this as an opportunity.

The part of Thirdward that's close to the med center had 500k plus homes and plenty of multi family.

People who get an MBA, law degree, go to med school, could make six figures but also often have six figure debt, and they have to work 70 hours a week to keep their job and pay off their debt and they can't escape.

A bunch of my rentals here in New York were geared towards university and med students when we first got started.