pay down debt or invest

[Shobi Raj]

Hi everyone,
Should I invest my 10K from a mutual fund on a rental income property or should I use this money to pay down my 6.25% interest only loan of 5 years on a investment property that is upside down? There is very little I can do to cut this property loose in short of going into foreclosure. I do not want to do this as I have a heloc tied to it from my primary residence. I am planning to sell my primary residence within a year or two (I will have it on the market by April 2011). I think it will take this long to sell my house especially since it is fairly large, older home. If I sell it then I can pay off the heloc and the investment property might start cash flowing. In the meantime, I have $10k in a mutual fund that I would rather use to invest in another rental that might cash flow around $150/month. The ROI I get with the mutual fund is anywhere between 5%-10%. Inquired about refinancing, and came up with same monthly payment amount and additional closing costs. Hence, my option is to pay down the debt as soon as possible. But investing now with such opportunities is very alluring! Hope I have provided enough information to get some answers. Thanks for taking the time!