I have surplus capital to throw down on the second lien.

Some universities have a surplus of student rentals in the 4BR category, and a shortage in the 1BR and 2BR category.

I learned that I needed six months worth of cash surplus to feel comfortable.

If I had $1,500 and my surplus income was going to other things I would wait until my situation changed.

Between the expected appreciation, the surplus of foreign cash getting parked here, and the high insurance costs.....this isn't an ideal rental market.  

Ideal Floors for the flooring, Seconds and Surplus for cabinets.  

Nevada had a budget surplus for 3-4 years and instead of investing the coffers, they decided to give a one time refund to everyone.

I know that some investors are hesitant to even cross state lines, so for some this is a topic beyond their expertise and comfort level in investing.What initially brought this topic to mind was Canada, a country with great demographics, fiscal and monetary policy, a stable country that holds a budget surplus (last time i checked), and is growing.

I've said much of the same regarding fundamentals about the current exuberance in the Salt Lake market (combined with the current flight from stocks and surplus of 1031 money now that investors can relinquish at reasonable prices).We also have a race against the uptick in interest rates that I think will soften the market this fall (but no crash).  

After that, unless your planned savings or investments produce an after tax return which exceeds the interest rate on your debt, you are better off applying any surplus earnings/windfalls/funds to your debt.