20k - Pay off Car or Buy First Buy and Hold SFR?

[Mark Graziano]

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?

[Jason James]

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.