Hi all,
I feel like this is just a math problem, but someone here may just have an easy answer.
My friend/co-investor and I have just purchased out first multi unit investment property.
I used my FHA on this one and we put down 3.5% and I am living in the middle unit. We hope to buy another one in the next year, using my co-investors FHA loan.
Our goal on these properties isn't to get rich at first, but to just break even or make minimal cash flow.
Now we find ourselves in a philosophical dilemma of choosing where to throw our money over the next couple decades.
We already each do Roth IRA (max out yearly) and both have workplace retirement accounts, though may not maximize their potential. We both also have student loan with between 5.5-6.5 percent interest rates. We also both have over 10k in Vanguard so have very low fees on VTSAX returning probably a greater than 5% rate over the long haul. Our first mortgage is about 4.5%.
I think our options are rushing off payments on mortgage, right now we pay $162 a month on the first time buyers insurance until we get to 20% equity.
Another option is to only pay minimum on the house, and maximize personal cash flow and save for the next downpayment on house number two.
Other options may be use cash to wipe out student loans while paying minimum on first house.
I have about 30k in loans, and my co-investor has around 40k.
Other information -
I have minimal debts other than student loans, make 66k a year, no car payment, and will now have virtually free rent.
Co-investor makes 100k a year, has small car lease, but still has to pay rent living elsewhere of between 6-800 a month.
After reading many of these posts in the past, and going purely off math, it seems like student loans should go first.
However I am not an expert yet on mortgages and leveraging them, should we make getting as much equity in our properties the focus?
Thanks,