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?