Wipe Out Student Loans or Save for Later Real Estate Buys?

[Chris Williams]

I've seen some threads about paying down student loans vs. investing in real estate. Usually great material; par for the course here. However, I haven't come across one discussing my situation. So I thought I'd start one. If nothing else, it may help those in a similar situation at some point.

Prior threads have weighed the pros & cons of paying off a student loan (or a high-interest debt like car loans) in the short- to medium-term, vs. using that money to buy real estate. The question of time comes up, of course. How long until the student loan is paid off? How aggressive should you be? 

Here's my snag. I've saved enough that I could pay off my student loan balance NOW.

This came from several years of saving my income, and paying down the student loan at standard payment level. Wasn't a huge loan anyway.

I rent in a shared house, own an older car, and use a work-issued phone, so my expenses aren't too high. Job's not going anywhere. I own no property right now. The student loan is the only debt I have.

I could press a button and wipe it out (and still have about 3 months' expenses left in the bank). This would of course risk my ability to handle a crisis, leave me with fewer liquid assets, and negate my ability to buy real estate for a while.

Thing is, I wasn't planning to anyway. I have decided not to buy real estate in my immediate area (San Francisco Bay Area) due to the ridiculous pricing here. My income's OK, but not enough to sustain mortgages here if I have vacancies. The numbers I see just don't work. 

I plan to move out of the area in a couple years, and THEN begin investing. Or try note investing.

My question is: should I do this? Or just keep saving, pay the loan down over time, and buy real estate in a year or two?

Thanks everyone.