Good debt is defined as debt that produces cash flow. Home ownership is considered good debt because it offers a tax advantage, your home can accrue in value and you have a place to live at a rate fixed for 30 years. Caitlin was really savvy in that she accomplished all of the above in her first home purchase and more. She purchased a two family which will mean her tenant is paying the majority of her mortgage while she lives there for a nominal amount! It is also highly likely that in 5 or so years Caitlin will have saved enough money to purchase another piece of real estate whether it is a single family or perhaps another investment piece. And guess what? In 30 years when the mortgage is paid for this home becomes a 100% revenue stream. Pretty smart 26 year old, huh :) She's my hero!