{"id":1862,"date":"2022-06-23T18:44:27","date_gmt":"2022-06-23T18:44:27","guid":{"rendered":"https:\/\/blog.ark7.com\/?p=1862"},"modified":"2023-05-18T03:11:27","modified_gmt":"2023-05-18T03:11:27","slug":"debt-snowball-method","status":"publish","type":"post","link":"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/","title":{"rendered":"Debt Snowball Method"},"content":{"rendered":"
\n
\n
\n
\n

\"\"<\/p>\n

In real estate, the debt snowball method refers to utilizing 100 percent of your rental income cash flow to quickly and aggressively pay off your rental property’s mortgage in its entirety.<\/span><\/p>\n

What is the debt snowball method?<\/b><\/h2>\n

Essentially, the debt snowball method is an aggressive strategy to pay off credit cards, loans, and consumer debt that has “snowballed” out of control.<\/span><\/p>\n

The term and method were popularized by the well-known financial author Dave Ramsey. The strategy calls for individuals to begin paying off their debts in order of smallest to largest. The idea behind the debt snowball method is that paying off smaller debts first allows you to see progress more quickly. In turn, seeing progress quickly helps to build momentum, which will lead to behavioral changes that help you to stay out of debt in the long term.<\/span><\/p>\n

In the scope of real estate, many investors use the strategy of buying and holding rental property with the hope that the value and rent price will appreciate over time. While this method works for many real estate investors, those who utilize the snowball method for paying off their mortgages quickly can actually grow their property portfolios faster.<\/span><\/p>\n

Case study of the debt snowball method<\/b><\/h2>\n

The following example serves as a case study for the debt snowball method in action.<\/span><\/p>\n

Imagine that a real estate investor purchases three investment properties, each through secure low-interest mortgages. The investor then rents out each of these properties. However, instead of pocketing the income from these rental properties, the investor takes 100 percent of the cash flow and aggressively pays the mortgage on the lowest balance. Through the snowball method, the investor works to pay off the lowest of the three mortgages in its entirety first. The investor continues to utilize the snowball method until each mortgage is paid off completely. Once a mortgage is paid off entirely, the rental income can then be saved to obtain a cash down payment for the investor’s next rental property.<\/span><\/p>\n

While the debt snowball method can take many years to complete, investors who utilize this method eventually own each of their properties free and clear which allows them to have free reign over all decisions made with the property.<\/span><\/p>\n

The bottom line<\/b><\/h2>\n

In a nutshell, a real estate investor can use the debt snowball method to pay off mortgages on their rental properties quickly and aggressively. By following the debt snowball method, investors reap the benefit of owning each of their rental properties outright. In addition, the debt snowball method provides investors with flexibility in their mortgage payment planning, allowing them to pay it off aggressively and pull back on payments when necessary.<\/span><\/p>\n

 <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

In real estate, the debt snowball method refers to utilizing 100 percent of your rental income cash flow to quickly and aggressively pay off your rental property’s mortgage in its entirety. What is the debt snowball method? Essentially, the debt snowball method is an aggressive strategy to pay off credit cards, loans, and consumer debt …<\/p>\n

Debt Snowball Method<\/span> Read More \u00bb<\/a><\/p>\n","protected":false},"author":12,"featured_media":1863,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[107],"tags":[266,268,267],"class_list":["post-1862","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-glossary","tag-debt-snowball","tag-what-is-the-debt-snowball","tag-what-is-the-debt-snowball-method"],"yoast_head":"\nThe Debt Snowball Method in Real Estate<\/title>\n<meta name=\"description\" content=\"Discover how the debt snowball method can be applied in real estate investing. Learn how this aggressive strategy can help investors pay off rental property mortgages quickly and grow their property portfolios faster.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Debt Snowball Method in Real Estate\" \/>\n<meta property=\"og:description\" content=\"Discover how the debt snowball method can be applied in real estate investing. Learn how this aggressive strategy can help investors pay off rental property mortgages quickly and grow their property portfolios faster.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/\" \/>\n<meta property=\"og:site_name\" content=\"Ark7\" \/>\n<meta property=\"article:published_time\" content=\"2022-06-23T18:44:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-18T03:11:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ark7.com\/blog\/wp-content\/uploads\/2022\/06\/Debt_Snowball_featured-585_330.png\" \/>\n\t<meta property=\"og:image:width\" content=\"585\" \/>\n\t<meta property=\"og:image:height\" content=\"330\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"The Ark7 Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"The Ark7 Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/\"},\"author\":{\"name\":\"The Ark7 Team\",\"@id\":\"https:\/\/ark7.com\/blog\/#\/schema\/person\/5ab2b507abb19df7b43e8c52cd6127a8\"},\"headline\":\"Debt Snowball Method\",\"datePublished\":\"2022-06-23T18:44:27+00:00\",\"dateModified\":\"2023-05-18T03:11:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/\"},\"wordCount\":449,\"publisher\":{\"@id\":\"https:\/\/ark7.com\/blog\/#organization\"},\"keywords\":[\"Debt Snowball\",\"What Is the Debt Snowball\",\"What Is the Debt Snowball Method\"],\"articleSection\":[\"Glossary\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/\",\"url\":\"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/\",\"name\":\"The Debt Snowball Method in Real Estate\",\"isPartOf\":{\"@id\":\"https:\/\/ark7.com\/blog\/#website\"},\"datePublished\":\"2022-06-23T18:44:27+00:00\",\"dateModified\":\"2023-05-18T03:11:27+00:00\",\"description\":\"Discover how the debt snowball method can be applied in real estate investing. Learn how this aggressive strategy can help investors pay off rental property mortgages quickly and grow their property portfolios faster.\",\"breadcrumb\":{\"@id\":\"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ark7.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Debt Snowball Method\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ark7.com\/blog\/#website\",\"url\":\"https:\/\/ark7.com\/blog\/\",\"name\":\"Ark7\",\"description\":\"Learning Center\",\"publisher\":{\"@id\":\"https:\/\/ark7.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ark7.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ark7.com\/blog\/#organization\",\"name\":\"Ark7\",\"url\":\"https:\/\/ark7.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ark7.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ark7.com\/blog\/wp-content\/uploads\/2022\/05\/cropped-cropped-logo.png\",\"contentUrl\":\"https:\/\/ark7.com\/blog\/wp-content\/uploads\/2022\/05\/cropped-cropped-logo.png\",\"width\":270,\"height\":72,\"caption\":\"Ark7\"},\"image\":{\"@id\":\"https:\/\/ark7.com\/blog\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ark7.com\/blog\/#\/schema\/person\/5ab2b507abb19df7b43e8c52cd6127a8\",\"name\":\"The Ark7 Team\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ark7.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/3a59cc52539b343392711ff54022ff61538d678c0ce0927f48b8fc843fff058e?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/3a59cc52539b343392711ff54022ff61538d678c0ce0927f48b8fc843fff058e?s=96&d=mm&r=g\",\"caption\":\"The Ark7 Team\"},\"url\":\"https:\/\/ark7.com\/blog\/author\/blog\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Debt Snowball Method in Real Estate","description":"Discover how the debt snowball method can be applied in real estate investing. Learn how this aggressive strategy can help investors pay off rental property mortgages quickly and grow their property portfolios faster.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/","og_locale":"en_US","og_type":"article","og_title":"The Debt Snowball Method in Real Estate","og_description":"Discover how the debt snowball method can be applied in real estate investing. Learn how this aggressive strategy can help investors pay off rental property mortgages quickly and grow their property portfolios faster.","og_url":"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/","og_site_name":"Ark7","article_published_time":"2022-06-23T18:44:27+00:00","article_modified_time":"2023-05-18T03:11:27+00:00","og_image":[{"width":585,"height":330,"url":"https:\/\/ark7.com\/blog\/wp-content\/uploads\/2022\/06\/Debt_Snowball_featured-585_330.png","type":"image\/png"}],"author":"The Ark7 Team","twitter_card":"summary_large_image","twitter_misc":{"Written by":"The Ark7 Team","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/#article","isPartOf":{"@id":"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/"},"author":{"name":"The Ark7 Team","@id":"https:\/\/ark7.com\/blog\/#\/schema\/person\/5ab2b507abb19df7b43e8c52cd6127a8"},"headline":"Debt Snowball Method","datePublished":"2022-06-23T18:44:27+00:00","dateModified":"2023-05-18T03:11:27+00:00","mainEntityOfPage":{"@id":"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/"},"wordCount":449,"publisher":{"@id":"https:\/\/ark7.com\/blog\/#organization"},"keywords":["Debt Snowball","What Is the Debt Snowball","What Is the Debt Snowball Method"],"articleSection":["Glossary"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/","url":"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/","name":"The Debt Snowball Method in Real Estate","isPartOf":{"@id":"https:\/\/ark7.com\/blog\/#website"},"datePublished":"2022-06-23T18:44:27+00:00","dateModified":"2023-05-18T03:11:27+00:00","description":"Discover how the debt snowball method can be applied in real estate investing. Learn how this aggressive strategy can help investors pay off rental property mortgages quickly and grow their property portfolios faster.","breadcrumb":{"@id":"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ark7.com\/blog\/learn\/glossary\/debt-snowball-method\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ark7.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Debt Snowball Method"}]},{"@type":"WebSite","@id":"https:\/\/ark7.com\/blog\/#website","url":"https:\/\/ark7.com\/blog\/","name":"Ark7","description":"Learning Center","publisher":{"@id":"https:\/\/ark7.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ark7.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ark7.com\/blog\/#organization","name":"Ark7","url":"https:\/\/ark7.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ark7.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/ark7.com\/blog\/wp-content\/uploads\/2022\/05\/cropped-cropped-logo.png","contentUrl":"https:\/\/ark7.com\/blog\/wp-content\/uploads\/2022\/05\/cropped-cropped-logo.png","width":270,"height":72,"caption":"Ark7"},"image":{"@id":"https:\/\/ark7.com\/blog\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ark7.com\/blog\/#\/schema\/person\/5ab2b507abb19df7b43e8c52cd6127a8","name":"The Ark7 Team","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ark7.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/3a59cc52539b343392711ff54022ff61538d678c0ce0927f48b8fc843fff058e?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/3a59cc52539b343392711ff54022ff61538d678c0ce0927f48b8fc843fff058e?s=96&d=mm&r=g","caption":"The Ark7 Team"},"url":"https:\/\/ark7.com\/blog\/author\/blog\/"}]}},"_links":{"self":[{"href":"https:\/\/ark7.com\/blog\/wp-json\/wp\/v2\/posts\/1862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ark7.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ark7.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ark7.com\/blog\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/ark7.com\/blog\/wp-json\/wp\/v2\/comments?post=1862"}],"version-history":[{"count":2,"href":"https:\/\/ark7.com\/blog\/wp-json\/wp\/v2\/posts\/1862\/revisions"}],"predecessor-version":[{"id":2902,"href":"https:\/\/ark7.com\/blog\/wp-json\/wp\/v2\/posts\/1862\/revisions\/2902"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ark7.com\/blog\/wp-json\/wp\/v2\/media\/1863"}],"wp:attachment":[{"href":"https:\/\/ark7.com\/blog\/wp-json\/wp\/v2\/media?parent=1862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ark7.com\/blog\/wp-json\/wp\/v2\/categories?post=1862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ark7.com\/blog\/wp-json\/wp\/v2\/tags?post=1862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}