Chris owns some property that he's thinking of selling, in order to help pay off his mortgage. Dave thinks this is a no-brainer.
QUESTION: Chris owns a piece of property and he is considering selling it to pay off his own mortgage. He would have a capital gain of about $120,000 and he owes $140,000 on his own house. Should he sell the property?
ANSWER: You should not go into debt to invest, which is essentially what you’re doing here. Sell the property. You’ll pay some taxes, but you will be debt-free. Then, take the house payment you used to have and invest it in good growth stock mutual funds or in real estate if you want to go that route again.