Should I sell my rent house and put the money in the s&p500?

[Taylor White]

I'm trying to work through some investing thoughts and would love to hear other people’s thoughts/opinions!

Theoretically, right now, I could sell one of my rent houses and not have to pay capital gains on it (because I lived in it for 2 of the last 5 years.) I think I could sell it for $175,000 or so. I owe ~$76,000. So after selling fees and repairs, I should end up with at least 75,000. So here is what I'm seeing in "keeping" vs "selling"

Keep: cash flow 5-6k per year. After 25 more years the house will be paid off and worth probably $400k. I will also probably have spent ~50k on repairs and renovations in that time. So house value + 25yr cash flow - expenses should be about 500k give or take...

Sell: Put the 75k into something safe (probably just a mix of index funds) assuming an average of 8% per year for 25 years, should come out to over $500k. And I won't have to deal with clogged toilet phone calls for the next 25 years haha

Am I missing something? Even keeping the house after it's paid off and cash flowing $20k/year doesn't compare to the average gains of the $500k in the s&p. Also, I haven't factored in the tax benefits of keeping it, but that gets complex and hurts my brain.

I always lean toward holding my properties, but the recent surge in DFW prices and the closing window of being able to sell this one without CG taxes has me re-thinking..