Payoff in every 5 years or continue to build real estate portfolio?

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My husband and I are at a turning point in our financial lives. I recently completed my stay in medicine, he is about to get his MBA in two weeks. I ran a “snowball debt” a computer to my new doctor on earnings and we will pay our debts (mortgage principal residence, mortgage for 3 investment properties, credit cards and small student loans) in 5 years. This does not apply to the salary increase that will hopefully get my man, if full payment even faster than 5 years. We also want to put tons of cash in early ‘gespeichert.Auf interest on the other hand, we also set the goal of building a real estate company, including the transition from renting residential medical care commercial rental properties. In support of this goal, we have used the weak housing market and continues to acquire residential property. That would give us a lot of money because of our great city in southern Texas cheap housing, which is now more depressed affordable in this market, but is certainly worth a lot more over the next five years or so.Mein husband and I discussed in detail, we’ve gone back and forth. The two routes are very attractive. So my question is – If you were in a similar situation, would only form of payment “and delete your debts in 5 years or if you are building a large portfolio of property Lavista – totally missed. First of all, my degree is worth more than paper. For me and most countries in the world is there to do my degree, I always wanted to heal people. In addition, I try to ensure that I caught not by the superficial world, my husband and I live in a country where the average wage is 1 / 3 of (although I consciously that something constant I confess to fight against) which is our annual salary, my car is 10 years, I still have clothes that I had since college, we rarely try to shop for all consumer goods and, general, be good stewards of the earth’s resources. After these words, I would not be stable. I like knowing that whatever happens, I’ll be in a position for me and my family to do. There is nothing superficial or wrong on this point since I would like to donate more time and money than the average American citizen. Thank you for the link, though. I’ll check. -M

  1. Reply
    January 22, 2011 at 3:35 pm

    You are definitely on the right track, but I would erase all debt except for your primary residence and “vacation home”, as there are significant tax advantages to this debt over others. The rental property interest should be tax deductible as a business expense. When everything else is paid off, you can use the equity in those properties to get money more easily if the real estate market has improved. If it hasn’t, you will have more money to look at properties that would be even cheaper than today.
    With the glut of property out there, make sure you have enough savings to carry the property without income for at least 6 months to a year, in case the real estate market continues to deteriorate. It would be a shame to have come this far, but lose it all in 5 years because you overextended now.

  2. Reply
    January 22, 2011 at 3:39 pm

    If your goal is really to start a real estate company, I would take advantage of the housing prices now and buy a couple more properties. If/when your husband receives a salary increase, then consider paying down debt more aggressively with the salary increase.

  3. Reply
    Christina Wooten
    January 22, 2011 at 3:54 pm

    It sounds to me like you are on the right track. There is a great website that talks a lot about building real estate portfolios and paying off debt. Which looks like exactly what you are trying to do. I’d check it out! I think there are membership plans and you can get one-on-one help if you get the premium one. I listen to the radio show Unlock Your Wealth Radio a lot and I think it has good valuable information. I needed to get out of debt from a awful divorce. Let me know what you think!

  4. Reply
    January 22, 2011 at 4:50 pm

    try to use some online calculators and get a rounded payment figure and pay it off first. I hate to break it to you…im sorry…but all degrees in America are worth paper and nothing more. Do not fall into the superficial showoff world..where nothing matters….go to alternative news media and see how people are changing their lifes for the better.

    type Gerald celente and get his economic views..go to alex jones website and see how people are changing their life by thinking differently than what government would like you to belive

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