Seeking debt reduction advice

[Troy F.]

Hello,

I'm looking for a little advice on which debt I should reduce. I have $30,000 I've decided I want to put down on the principal of one of two rental properties I currently have mortgaged. I'm curious to hear which of the two properties you all think I should put the money into. 

Property #1 is a 5 unit with a commercial loan, amortized for 25 years with a 5 year balloon. Current rate is 5.75%. I'm three years into the balloon. Remaining mortgage is $171,000.

Property #2 is a single family, conventional fixed rate mortgage. It is amortized for 30 years at 6%. Remaining mortgage is $107,000.

You may also ask, why not buy another property with this money? That's a great question. One reason is that I am retiring from the military and my income will be changing significantly. I feel reducing debt is a safe bet.

Thanks,

Troy

[Theresa Harris]

If you are changing careers and your income will go down significantly (you said change, I implied decreasing), why not keep the money as a back up/emergency fund in case you need it?