Starting Out
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated almost 10 years ago on . Most recent reply
![Mark Graziano's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/265907/1621437518-avatar-markg5.jpg?twic=v1/output=image/cover=128x128&v=2)
20k - Pay off Car or Buy First Buy and Hold SFR?
I am a single 31 year old living in the Atlanta area that currently has 20k liquid to either pay off a 18k car note or invest into an investment property. The auto loan is at a low rate of 2.25% and has a payment of $413 however I usually pay $450. Paying this off would net me a $450 positive cash flow per month but would wipe out any money I would use for a down payment on an investment property.
I have been looking at the market and most of the analysis of properties around my area net after all expenses a cash flow of $100 - $150 per month. I use the assumptions of a SFR - 90k property with 18K down.
I currently save around $600 a month on top of my current payment auto payment and other bills.
I currently work in a job that pays the bills, but real estate is my passion. I want to jump in as soon as possible but I do not want to make a careless decision.
With these variables, what would you do?
Most Popular Reply
![Jason James's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/203068/1621432933-avatar-neighpropllc.jpg?twic=v1/output=image/crop=720x720@0x471/cover=128x128&v=2)
Sell the car and buy a 5K ride. Use the rest of your funds to purchase a SFR or multi rental. Keep some funds for an emergency fund. My 2 cents.