Welcome to the board, Bugs.
Originally Posted by bugs8
My tax person is trying to convince me to sell the rental he says' I can do much better in the market.
Ha ha, that's a good one!
He might be right, and he might be wrong. I'd have a hard time calling today's market "undervalued" with the DOW and S&P500 nearing/exceeding all-time highs.
The whole debate is really an asset-allocation question, and you have to sort yours out for your comfort level. Have you read Bernstein's "Four Pillars" book or taken a look at what asset mix you want?
For tax-deferred compounding it's probably a better move to contribute the max to your 401(k) and your IRA before trying to accelerate the mortgage. But if you sell the rental then you can pay off the mortgage altogether and decide how best to allocate the rest of the after-tax profits. It'll also eliminate management & tenant hassle, although you may have decided by now that you enjoy being a landlord. Do you have any attachments to the place?
Speaking of taxes, the rental property may have a stepped-up basis that will eliminate some of the taxes. Or you could sell your primary residence, possibly paying lower cap gains taxes (maybe none at all) and move into your mother's house as your primary residence. The finances of the whole situation need a CPA's analysis of the after-tax profits, which should give you more numbers to crunch in FIRECalc...