Should You Pay Off Debt or Invest in Real Estate? (Follow This Rule) | AMA (Ask Meyer Anything)

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 15 January 2025

⏱️ 36 minutes

🔗️ Recording | iTunes | RSS

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Summary

Can’t figure out how to buy multiple rental properties a year with your current income? Wondering whether you should get rid of your student loans before buying your next property? Maybe your market is too expensive, so is it time to go out of state instead? These are some of the most common questions we see on the BiggerPockets Forums, and today, we’re answering them so you can get to your next rental(s) faster, even if you’ve got debt and even if your home market is too expensive. First, we’re explaining when and why we buy properties without ever seeing them in real life. Isn’t that a huge risk? Yes—if you do it the wrong way. Next, should you invest out-of-state if your home market is too expensive, and if you decide to do so, what should you know BEFORE buying a property well outside driving distance? Want to scale faster? We’re discussing purchasing multiple rental properties a year and when it’s time to grow your real estate portfolio. Got student debt? You’re not alone! Henry had his student loans until recently and still heavily invested in real estate. But, if your interest rate crosses a certain threshold, we’d definitely recommend reconsidering real estate investing. Stay tuned; we’ll share when your debt is too much to invest. Join BiggerPockets Momentum 2025 to supercharge your investing this year! In This Episode We Cover: How to buy multiple rental properties a year and when it’s time to scale Paying off debt vs. investing and whether six-figure student loans are stopping you Buying rentals sight unseen, the risks, and why we do it under certain circumstances Out-of-state investing 101 and signs it’s time to leave your home market to invest elsewhere Keeping vs. selling a negative cash-flowing rental property (and when to hold for equity) And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Ask Your Question on the BiggerPockets Forums BiggerPockets YouTube Grab Dave’s New Book, “Start with Strategy” Get Fully Customizable Insurance Coverage for All Phases of Occupancy on One Monthly Schedule and Bill with NREIG Sign Up for BiggerPockets Momentum 2025 to Supercharge Your Investing This Year Property Manager Finder Ask Your Question on the BiggerPockets Forums Connect with Henry Connect with Dave (00:46) Buy Rentals Sight Unseen? (06:03) Out-of-State Investing 101 (10:59) Ask Us Questions LIVE! (12:37) Buy 2 Rentals in 1 Year? (16:12) Invest While in Debt? (21:46) Keep Negative Cash Flow Property? (27:03) Post Your Question! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1070 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	You all have real estate questions. Henry and I are here to answer that.
0:09.0	Hey, everyone, it's Dave here with Henry Washington, and we've once again dug into the
0:15.0	Bigger Pockets forums for a few burning questions that you're all trying to answer in your
0:20.0	own investing careers. We're going to give you our best trying to answer in your own investing careers.
0:21.6	We're going to give you our best advice to avoid headaches and maximize your returns on the
0:25.8	road to financial freedom through real estate. Henry, what's happening, man?
0:30.2	What's going on, buddy? This is my kind of show. I get to tell other people how to spend their
0:33.7	money. I know. People just, people like listening to you. You've got a very
0:37.5	reassuring presence about you. So I'm glad you're here to give people advice because they're
0:42.4	probably more likely to listen to you than to me. Fair enough. All right. First question.
0:48.2	The title of this form post is locking up a property, site unseen, need advice. Daniel says,
0:56.5	I'm looking at a property that checks all the boxes.
0:57.5	It's got good numbers.
0:58.6	It fits my buy box.
1:00.0	But I haven't seen it in person.
1:03.0	I've visited every other property I've considered in the past.
1:05.1	So this is uncharted territory for me.
1:07.5	And it feels a little out of my comfort zone.
1:11.2	I'm considering putting it under contract site unseen to lock it up,
1:16.0	but I don't want to make a rookie mistake here. Do you rely on inspections, local contractors,
1:20.8	the agent, or property managers to get eyes on it? I feel like there's a balance between being decisive and being reckless, and I'd love to hear how you guys approach this. Any tips,
1:25.6	warnings, or real life lessons are welcome. I've got all three of
	...

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