Pay off Student Debt or Invest

[Nick S.]

I am 24 years old, just graduated, and I recently settled in personal injury lawsuit and will be walking away with around $20,000 in my pocket.  I currently have $10,000 on a lease on a car. The lease is still going for another 27 months. I also have a high interest $5000 student loan and no credit card debt. I am currently renting out a room in a house with my girlfriend for $475 a month plus $125 in utilities. I was just pre-approved for a house up to $175,000 on my income alone and currently reside in the Milwaukee area. 

I am looking for recommendations as to what I should use the money for. I would like to purchase a home and use an extra room for extra income but I don't know if that is the best use of the money. Any thoughts? 

[Jesus Moreno]

@Nick S. I have to say it depends on what the numbers say. if you can invest in a property that returns more than the interest on your student loans then the answer is to invest in real estate. Now if you have horrendous interest rates on your student loans exceeding the potential ROI of an investment in your area, then pay those student loans off. Maybe the answer is paying a portion of the loans of and using a portion of your cash to invest. you need to evaluate your situation and see which of these alternatives will give you the greatest return or save you the most on interest. I hope this helps.