I understand the appeal and peace of mind of paying everything off, but there's also value in having another source of income and asset. 

You'll probably lower the property value and appeal doing that.

I'd also be nervous about evicting the first floor tenant in the future, especially if 10K didn't appeal to them, which is shocking.  

He made a personal appeal How did you finance this deal?

Improved curb appeal.3.

If that is a method that you’ve got figured out in your market and you’re willing to keep rolling those proceeds into more and more deals, there is a good chance you can make more money over the long run.I think looking at national trends option one sounds most appealing to me, but again, I don’t know your market or strategy.Best of luck with your awesome problem.

@Evan Mimier I want to know more about this property and why it appeals to you:Is it on market, off market?  

The fundamentals remain the same -- stage it well, with good design and quality furnishings, photograph it well and be in a good location.

Obviously, if you are not into Hilton branded properties, this probably won't appeal to you. 

How bad does the basement flood, and when (ask the renters).Plus the example you provided has paint peeling off, splitting dry wood, and siding in need of repairs.And is that a paint color you want to rent.It looks like it might be a "Matchy Matchy" block with similar roof line houses.Look at the home to the right of it, soft colors with a white trim, looks much more "CLEAN" to me like it would draw a better renter, and a few dollars more a month.If it's a "matchy matchy" look for the most visually appealing home that matches and base new color choices on that.Dose the rest of the neighborhood have "Jail doors" on the front?