Tripled my equity; time to trade up with a 1031?

[Matt W.]

Hello Beautiful People, 

I need some advice...the house in question was my first rental property, a small class C 3/2 SFH, purchased 2 years ago for $155k with 20% down. Today similar houses on the street are selling for 220-225K. It is currently rented for $1400/mo and PITI is $840. It's a decent money maker but I think I could use the equity better if I sell and trade up. If I sold for 220, after fees and paying off the existing mortgage I would be left with @83K. Should I

A: put all the money down for 20% on a nice (class A) 400k house that would cash flow more in absolute terms but less in a CoC basis.

B: put all/most of the money down on a decent (class B) 250k starter home and have great cash flow. This is 32% down, I'm thinking this might b a good compromise of cashflow, headaches and appreciation.

C: come up with about $10k cash out of pocket to buy two 220k houses on the same block, basically doubling what I already have but my cash flow will be a little less per unit because I have a bigger mortgage. 

I think any option in the long term will be a net benefit, but I'm not sure if my thinking is straight about each choice. 

Thanks for any input.