Because my ROE is so low now at about 1.8% and I can't tap into that locked up equity im debating selling so I can put that locked up equity in the stock market for an average gain of 7%.  

Personally I would not liquidate the stocks, just maybe only contribute a smaller amount to it on a monthly basis.As far as the car, I would pay it off from current income.

I would like to start converting 50% of our built stock to a rental portfolio.

I am obviously a big fan of RE but the stock market can be another excellent form of long term investing that is truly passive and also liquid.

His original targets were penny stock companies, which are often havens for fraud.

Especially if you are involved with cleaning and stocking, ect.  

If I had known then what I know now for long term growth I would have done more in low fee total stock market index finds like VTSAX or SCHB which are diversified to mimic the entire stock market and include RE.

If one thinks of these as individual real estate portfolios rather than as speculative stocks, and therefore has the ability to ignore short to intermediate term market fluctuations, I believe  they can offer a superior investment opportunity for passive real property investment. 

Reduce what you are investing, stocking away for a brief time.

If you have money to invest - I'd personally invest in the stock market right nowThe alternative to generating income is reducing expenses.