Pay down car payment or save up for first property?

[Tanner Ladsten]

I am bouncing back and forth between two 2021 goals:

1. Pay off $25,000 in auto loans

Or

2. Save $25,000 for an investment property down payment

I realize that real estate should appreciate more than a 4.5% auto loan; however, I will free up $500 of cash flow for 2022 if the vehicle is paid off.

Thoughts?

[Ken Naim]

Sell the cars and get 2 used cars for cash, build you your real estate investments and use debt as a tool for making money not buying depreciating assets. In short order you'll be able to afford any luxuries you want.