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.

Also got depreciation tax benefits. 2% appreciation and we're already close to stock market returns.With retirement planning, it's generally held that a 4% safe withdrawal rate from stock market holding.

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

For truly passive I would just go with dividend stocks.

If you can reasonably invest that extra $1,100/month into something earning higher than 4–6% after-tax (stocks, another property, your business), you’d come out ahead financially.

They don’t offset capital gains from things like stocks or crypto.

Stock market has to.  2.  

I’m still bullish on real estate but have 50% of my portfolio in the stock market to diversify a little.

(I should add that I understand the stock market and other financial instruments quite well from a decade of investing there, yet we are 90% in real estate today) Financial advisors do not understand real estate, nor do they want to talk about it, because there is no commission in it for them.