#1 I'd keep. #2, not so sure. If you sold now, you are barely making anything if not just breaking even. If you hold onto it, in a few more years it will be paid off and generating far more cash flow. Even now, you are not counting the principal they are paying toward your house, but it's something to consider, since it is paid every month right along with the rest of the payment. Yes, it's not money you get to spend, but unlike appreciation, it is just as reliable as counting cash flow since the very payment that gives you cash flow also pays principal down. In 12 years, both will be paid off and you will be clearing $5,500 (counting for inflation) before expenses, and the expenses will be very little compared to now, and you will likely be netting 4+K a month!