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Old 08-30-2011, 04:56 PM   #83
Phanuthier
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Quote:
Originally Posted by return to the red View Post
Just thought of something. If you have rental properties but carry a mortgage on those properties would you concider them debt still or an investment?
Its both. I think if you are in the business of rental properties and you don't consider mortgages on your rental properties as a debt, you might want to find a accountant pretty soon here.

As for what I would consider the "best type of debt" ... I would go with :
a) student loans. Gives you a solid foundation for the future. If you don't need it for tuition, you can invest it as well, at good rates.
b) cars? I think they get better rates?
c) real estate? or what should go here is whatever gives you the best rate

Either way, if I could generate any extra available cash, I'd put it in the market somehow. Like I said, my parents did the real estate gig and I get it... but for the risk/returns/etc I would take the market any day of the week.

If you are worried about risk, I would argue throwing your money at the NASDAQ, DOW, S&P500 are better in terms of return, liquidity and safety.
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