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Didn't quite understand the question but...

When choosing between two investments figure out the after tax return / cost on each choice. Allocate funds to the item with the highest return / cost for a particular risk level. If the risks are significantly different between the choices more judgement is required however in your case they seem to be roughly comparable.

You need to hold an investment for at least 1 year for it to qualify as a long term capital gain (15% federal tax rate). If you hold a home as your primary residence for 2 of the last 5 years you get to exclude $250k of capital gain from taxes ($500k if married); however, this appears to be a rental property not your primary residence so even if you kept it for 2 years it would not qualify anyway.
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