Pay off and sell, or sell and settle at closing?

[Naveen Desai]

Hello,

       I am in the situation for the very first time. Have a property which I have rented out and I have the money to pay off the owed mortgage. Also planning to sell- as I am managing the rental from far away.

However I want to know what is better?

Should I pay off and then sell ( possibly the current renter may be interested in buying). Or should I sell it and settle through closing. I had this commercial mortgage for over 5 yrs now and on selling it one or the other way, is there any impact on tax. Property has appreciated 68% since I bought it.

All advise appreciated.

Thanks.