What should I payoff with profit from selling my house?

[Prosperity8]

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I own 2 houses and will be selling my rental home for a nice profit. Should I payoff my student loans ($75k, 4.66%) or my 2 auto loans ([email protected]% and [email protected]%)? I have to choose between the 2 options.

 

[owlegrad]

I would use avalanche method and pay off auto loans.

do you mind sharing why you’re selling the rental home?

 

[Prosperity8]

I would use avalanche method and pay off auto loans.

do you mind sharing why you’re selling the rental home?

Tax and maintenance is killing me. I'm super busy with 2 young kids and with COVID, I'm working extra hours as manager. I have no time to manage rental.

 

[confettiflyer]

Definitely pay the auto loans, if your state has a tax break, drop some into a 529.

With the rest...I dunno...crypto mining?

Rofl I’m joking, don’t do that.

 

[Prosperity8]

Definitely pay the auto loans, if your state has a tax break, drop some into a 529.

With the rest...I dunno...crypto mining?

Rofl I’m joking, don’t do that.

I'm leaning towards paying auto loans because it's a tangible asset I own. In case of job loss, I can defer student loan payment. I just hate to have student loans on my back and psychologically have that debt in the back of my mind.

 

[Dred Pirate]

pay off the auto loans first - there is too much uncertainty on the future of student loans - I am not trying to start a political argument, but from a financial point of view - you may not have to pay them all off. FWIW I paid my students loans off last November and the feeling is great (and I will never take out another car loan)

 

[ValeRx]

you may not have to pay them all off.

How do you figure? Biden said no to 50,000. You think he's going to say yes to clearing everything off the board with taxpayer dollars?

 

[Dred Pirate]

How do you figure? Biden said no to 50,000. You think he's going to say yes to clearing everything off the board with taxpayer dollars?

I honestly haven’t kept up with the current legislation in this topic ass it doesn’t affect me, but I am guessing some sort of changes will likely happen. Has he for sure said no to any forgiveness?

 

[ValeRx]

I honestly haven’t kept up with the current legislation in this topic ass it doesn’t affect me, but I am guessing some sort of changes will likely happen. Has he for sure said no to any forgiveness?

I think the 10,000 is still a possibility.

 

[aqb]

Ever consider hiring a property manager?

 

[confettiflyer]

Don’t make financial decisions on emotion, and “feeling great” (while I’m not invalidating those types of feelings) is definitely an emotional response (akin to...”I just fell in love with this beach house” lol)

Seriously consider just throwing it into a taxable brokerage account and buy some tax efficient ETFs and revisit the issue in a year.

 

[BenJammin]

What's your credit score? Amazing that you have a car loan with interest rates that high. Must be from pre-2018

 

[Prosperity8]

My credit score is in the low 600.

What's your credit score? Amazing that you have a car loan with interest rates that high. Must be from pre-2018

T

 

[Prosperity8]

Ever consider hiring a property manager?

Even with property manager you can't escape the stress of tenants not paying rent and you can't evict them. The bills on this rental property is too much without steady monthly payment from my tenant.