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Dave Says

Dave Says
Dave Ramsey is America's trusted voice on money and business, and CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 12 million listeners each week on 575 radio stations and multiple digital platforms. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

No, no, no!

No, no, no!

Dear Dave,

My wife and I are recent graduates with advanced degrees. We also have about $300,000 in student loan debt. We're thinking about buying a rental property, and the plan is to get a mortgage with monthly payments of $400 and charge $800 in rent. We could use the extra to help pay off our debt. Do you think this is a good idea?

Jeremy

Dear Jeremy,

Are you serious? You’re in a financial crisis, and you ask if it’s okay to buy a rental property? No, no, no!

Right now, you guys are acting like Congress. You have a huge mess on your hands, and you’re both going to have to work like crazy to clean it up. That means living on rice and beans for the foreseeable future. It means no vacations, and you should not see the inside of a restaurant unless you’re working there to make extra money.

Again, no! You should not buy a rental property. Even if you did, this plan assumes that it’s constantly occupied and the renter actually pays. Those are two pretty big assumptions. Use whatever money you have to get out of debt, and live simple, inexpensive lives until you get this behind you.

Stop trying to borrow your way through all of your dreams, Jeremy. Doing that will only turn those dreams into nightmares!

- Dave


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Dave Ramsey is America's trusted voice on money and business, and CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 12 million listeners each week on 575 radio stations and multiple digital platforms. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.
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