Which is better?

[William Huston]

I am trying to figure out which move is best for my investments...

I have been investing in lendingclub since 2009 making good annual returns, but recently with the loosening of rules to allow more loans, i have been seeing a huge increase in loans going to collections and not being paid, so my annual returns have dropped drastically, im on par to maybe make 6% annual ROI this year on my 60k in the account....

I have a house in colorado that i owe 39k on left with 5.65% interest, after all bills i am pocketing about $200 a month, but if i was to pay it off that amount would increase $486 a month and the house would be paid for. 

Do you think it would be smarter to turn reinvestment off and put 39k of the 60k i have in lendingclub into the loan to pay it off, or just keep the lendingclub the way it is and continue to pay on the rental property?

[Travis Sperr]

@William Huston cashflow will be increased by $486 a month totaling $686 per month? or increase to $486 per month?

Given the two choices - I would pay off the mortgage - the increased cashflow is significantly better than the lending club return and in an asset you understand and have more control over.

Why not use some of the money to buy another rental?