Such a vehicle is not suitable for passive rental holdings.  

It is not great condition although across the street from the college so my son can go with a vehicle. 

And in the wrong vehicle, this happens easier.But let’s not lose sight of the difference between a high IRR and a high PROJECTED IRR.  

Precisely what Mitchell said.

@Shawn Ackerman - My reason as follows:Credit score 556 (not a deal breaker if it was medical bills)She co-signed for a car and has her own. 30-60 day late payments on the co-signed car (total car payments $750), if shes stuck with the co-signed vehicle.  

No reason to pay off a mortgage early unless you're sitting on a bunch of cash with absolutely zero you can do with it and it's just in the bank making you zero interest.Don't pay off your mortgage, instead find another investment vehicle that can earn you a rate of return that's in excess of what your existing mortgage rate is.

The passivity comes down to the investment vehicle you choose, rather than the city itself.

Are you going to move the TSP money into a SDIRA or some other investment vehicle that will allow you to invest that money along side the rental income? 

I prefer holding until you have a solid plan to reinvest the equity in a better-performing vehicle.

Not store non-operating vehicles, nor boats, RV’s, motor cycles, trailers, firearms, equipment, tools, hazardous materials, liquids, paints, fuels/oils or chemicals on premises without landlord/agent approval; no waterbeds Not install a swimming pool or any other water feature where the water is eighteen or more inches deep.