Invest now with debt, or invest later debt free?

[Cody Smith]

Hello BP community, quick question for ya. I am a new investor, soaking up all the information I can and building my business plan. I have two paths I can take to begin investing, wondering what you guys think or suggest. A little supporting info, I have ~$20k in accessible capital, and ~$21k in debt, split between a student loan and a car loan.

Option 1: I planned on immediately paying off the $8k in student loan debt, paying off the other $13k over the next 12 months, building our reserves back up once the debt is paid, then begin to invest with less debt and monthly payments.

Option 2: Continue to pay the two loans off over time, since they are low interest rates and maintain credit profiles to help with loans. Take that $20k I have on hand and invest in my first property. This would leave me with an asset, but without the cash reserves I would like to have set aside when I move to purchase my first property.

What are some of the other benefits/downfalls of either of these plans? Thank you guys for the help, this is truly a community of selfless people who help build fortunes and legacies. Stay safe.

-Cody