I inherited a fully paid off investment property. What should I do with it?

[Jenny Lu]

Hi fellow investors,

I recently inherited a fully paid off investment property, I estimate it's worth $500k. It is currently cash flowing $1300 a month. I have student loan debt from grad school with a balance of $160k, and the monthly payment is about $1100 a month with 17 years left on the loan. I also have a primary home and high child care expenses for my young children. I'm in my early 30s and am wondering what is the best way to use the investment property to improve my financial situation and what's best for the future. With my current job, I make enough to cover my mortgage, student loans, child care expenses, and I'm putting about 7% into my 401k. 

Any thoughts on what to do with the investment property would be greatly appreciated (keep it, pull out equity, sell it, etc). Thanks in advance. 

[Jay Hinrichs]

sell at stepped up basis and clear your debt .. then start over.. is what I would do.