Best Use of Money Question

[lakeridge]

Been reading for a little while and decided to join.  Wanted to get some opinions on best course of action regarding a rental property.  Thinking about whether to pay off a property that I have owned for several years with a long term tenant and mortgage balance of about 75k at 6.5% fixed.  Property is in a tough real estate market and current valuation is much lower.  Still recovering from a couple past credit issues so refinance probably not attractive.  Without mortgage, I would probably see about 500 month income.  Can pay off balance with a combination of cash on hand, sale of stock and withdrawl of Roth contributions.  No issues with using cash and stock toward balance but having trouble with the Roth withdrawl.  Amount to withdraw would represent fairly small percentage of overall retirement portfolio but still unsure about taking out.  I would probably have to wait another couple years to be able to use all non-Roth funds to pay off. I would probably hold on to property for at least another 5 years to try and recoup some value.  Thoughts and criticism appreciated.

[AJ]

If it were me, I would probably hold off on the Roth withdrawals. Can you just pay it down with the cash on hand and continue to make the payments for the next couple of years? Or, if you're looking for cash flow, could you pay it down and recast?

[arebelspy]

Pay down with cash on hand.  Pay off over time.  Don't do the Roth withdrawals.  You can't recontribute that money later, and Roth caps are so low, you'll want that in there.  Check anyways if you can refi or HELOC even with the credit issues.