Friday, March 10, 2017

To pay off $220K in student loans...

I have some significant students loans, but not certain if i want to buy rental property. Key word in this story is being creative:
Back home in Joliet, Illinois, Horton took a job as an operations manager at the nonprofit her mother runs. The salary was comparable to what she made in DC, but the cost of living was drastically less. She increased her student-loan payments, setting the lofty goal of paying them off entirely in a year.

Horton and her boyfriend tied the knot soon after the move. Horton's mother gave the couple a condo that she had purchased at an auction as a wedding gift. It became crucial in wiping away the hefty student-loan tab.

Horton and her husband lived in the condo for three months, but then they decided to move in with her grandparents down the street and started renting out the condo to bring in extra income. 

The income boost made a huge difference — so they doubled down.

Horton's husband had the idea of buying another rental unit to increase their cash flow even more. Though Horton was reluctant at first, she eventually agreed. They ponied up all the cash they could muster for a $42,000 two-unit condo to rent out, allowing Horton to rake in more money to put toward her loans.

The strategy worked so well that the couple ended up purchasing another $55,000 unit shortly thereafter.
...
All told, Horton said she and her husband were putting 95% of their combined income toward Horton's student loans, making payments of roughly $10,000 a month.

Horton committed fully to her goal and was willing to make sacrifices to reach it. When one of the couple's cars stopped working, Horton walked or biked 4 miles to work, rather than diverted cash toward buying another vehicle.
Must be nice to be free of the student loans.

2 comments:

Beth Haynes said...

Ms. Horton didn't buy shit - she was given EVERYTHING.

Beth Haynes said...

Ms. Horton didn't buy shit - she was given EVERYTHING.

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