Sell Stock To Buy Investment Property or Keep As Conventional

[Nic A.]

Curious thoughts on the following scenario.

Current SFR with $51k loan at 8.125%, just purchased with around 10% built-in equity on the property, $250 monthly cashflow (post expenses). Current individual stock portfolio (non-retirement accounts) with holdings that might be volatile in the next few years (big tech & big oil). $51k is about 17% of the portfolio and gains on the stock holdings are already 100-200% (long-term).

I wonder if it's worth it to sell shares pay the 15% capital gains and pay off the mortgage. The cash flow of the paid-off property would be $480 monthly (post expenses) and am thinking of reinvesting that back in the market. A few other things I'm considering;

- I don't need the extra cash flow to live and am just approaching it to remove the high mortgage interest, but also hedge risk that the current stocks might tank in a few years.
- Could take all current cash flow and a few thousand a year to pay off the property in 5-10 years.
- Hold for a bit and 1031 into something else but am fairly confident there is not much appreciation to come on this property.