Think of the two as high risk and low risk stocks.

You can tell if you are going to need cosmetics from the pictures but system replacements will be harder to predict.

Many people invest in stocks and bonds to get passive income, but the payout is not as lucrative as real estate.

Another thing to keep in mind is if you need to refi to get money out in a couple years in the future for your next down payment there is a big possibility you will be doing so at a higher interest rate.If you pay more down you are not reducing what you are paying monthly just shortening the number of payments in 25-30 years.It looks to me you are in a growth stage and having a stable predictable property with more debt (paying off at a regular rate).

I have always had more faith in real estate as an investment vehicle than say the stock market.

So I'd still 1031 that to avoid tax but put it into something debt free that simply produces net predictable cash. 

The stock market and real estate market looks a little unstable at the moment with 500-600 point drops and a lot more inventory.

I am not a stocks guy, but I always like to consider how passive an investment is, etc. 

For example, my plan is to focus on three passive income sources 1) real estate, 2) stock market cap gains and dividends, and 3) online business models such as blogging or Amazon FBA.

These allow me to replace "OK" investments with "superior" investments, and still meet my goals, while also diversifying away from stocks.