Potentially selling a property advice on using profit to pay off

[Ian Russell]

Just looking for a bit of advice as I have found some really intelligent answers in this forum before.   I have a house in San Jose, California that I am contemplating selling and need to figure out the best use of the profit from the house.  I would have about 500,000 in equity if I sell the property.

So currently I make 1200 per month by renting out the San Jose property, which I am told is not a great return since I have 500,000 in equity.

I currently have 8 rental properties actually 6 but two triplexes I just purchased will close next week

1.  First duplex is all paid off   net 1200 per month

2. 2nd Duplex is almost paid off  I owe 35,000  and will net 1400 per month

3. 3rd Duplex I owe 100,000 and am positive 400 per month  When paid  off it will net 1300 per month

4. 4th Duplex I owe  100,000 and am positive 400 per month  when paid off will net 1300 per month

5. 5th duplex I owe   100,000 and am positive 400 per month when paid off will net 1300 per month

6. 6th duplex I owe 120,000 and am positive 400 per month when paid off will net 1400 per month

7 7th triplex  I owe 170,000 and am positive 400 per month when paid of will net    1700 per month

8  8th triplex I owe 170,000 and am positive 400 per month when paid off will net 1700 per month.

Currently with San Jose property rental  at 1200 per month + the first paid off duplex netting 1200  and the other 7 properties rough yielding 400 per month for a total of 2800 per month for a total per month profit of 5200   this is an average and fluctuates if I have a major issue at a duplex.        

My Question would it be better to sell the San Jose House and take the 500,000 profit and just pay off 5 of the duplexes?   

1. duplex paid off  1200

2 duplex paid off 1400

3 duplex paid off  1300

4 duplex paid off 1300

5 duplex paid off  1300

6 duplex paid off 1400

7  400 cash flow

8  400 cash flow

My new cash flow would be 8700   compared to the 5200 by not selling the San Jose Property  so plus 3500 per month if I sold it.    The last question is how much do I get dinged on taxes when I sell a house.  I was living in it for 5 years and rented it out last year.  I really dont know what the best course of action is.  Any help would be great.