Should I sell my rental to pay off my residence?

[Brock W.]

Hello All-  First time poster and pretty UN-Savvy investor.  Perhaps you can help me?  

I own a modest 3/2 valued at 165k free and clear.  It has always had a great rental history and I've never had a vacancy in the 10 years I've owned it.  It rents for $1150/month.  

My mortgage balance on my residence is ALSO $165K.  The rate is 4.5% and the monthly payment is $1350.  The residence could probably sell for $315k give or take.

My question: Should I sell the rental and pay off the residence? I'd be making 4.5 percent in saved interest, probably 5.5% after all fees and expenses and such. I'd wake up debt free every day and could turn my salary toward the next investment, I could HELOC into my now paid-off residence if I needed to etc etc.

On the flip side, the rental (almost) pays my mortgage, and in 24 years I'd own 2 houses free and clear instead of one.  

Please let me know what you think of these options?  What considerations am I missing?  What are the macro-economic concerns that I need to pay attention to.

Thanks in advance.  Your input is very welcome.

[Jason D.]

I would never sell a property that makes money to buy a property that costs money. In my opinion, I would finance the rental and buy an additional property (or two). You'll make more than the 4.5% interest that youd save by paying off your primary, and probably cash flow enough to cover your whole mortgage, which is basically the idea of paying it off anyway