I’m gaining knowledge of costs to replace certain things in the house.

Thanks   I don't understand why you feel paying down your 6.625% mortgage is equivalent to 9% in stock gains before takes.

Oh got it, thanks for the explanation.I am not an accountant or attorney but from a  law point of view I believe that as long as the equity is bound in the property it is not realized capital gains so it won’t be taxed.You could structure it as a deferred payment due at some point in the future making it taxable at that point.

If you live in the property for two years and want to sell, you won't pay capital gains tax, so that is just another thing to keep in mind. 6.

You live in a unit and rent out the other units to help cover the mortgage and in earn some passive income.The State of California can be tough depending on where you want to live and what type of property you want to buy.

When I got into real estate investing years ago, I was told it would be mostly passive.

Honestly, I'd talk to a good CPA or estate planner about starting to sell off some of the properties while trying to reduce their capital gains taxes. 

Curious to hear other investors thoughts on whether I should cash out and sell or keep raking in the passive income.  

My plan is to self-manage so that I can maximize profits, continue to invest in others and build as many passive income streams as possible.

Initially, we plan to invest in lower-risk opportunities such as arbitrage to gain a better understanding of the market.