Trading up a Midwest Rental (decent cash flow) for a more expensive one (0 cash flow)

[Layne T.]

Hi BP Team,

Curious as to if you can add any other nuances to my decision making below.

Current Holding - Midwest home, for sake of ease let's estimate 100k of equity within a 200k value. Let's ignore closing costs/broker fees etc. for now. Cash flows a few hundred bucks a month, nothing significant. 30-year old property.

Potential Transaction - Trade in/1031 this property and move that 100k into a 400k value nicer/newer property. Would break even/no cash flow.

Current Holding Pro's of Keeping - 100k of mortgage left gets paid off eventually, resulting in pure cash flow (net of taxes/insurance/etc.). Much faster paydown. Cons of Keeping - older property, roof has been replaced but there will come a time when pipes start freezing/bursting with age and eventually will have to keep patching those or do a full gut that won't pay for itself.

Pro's of Newer Property - Newer build, start time clock over again on key component repairs, higher chance of appreciation. 
Con's of Newer Property - Zero cash flow to start, and won't be getting paid off anytime soon with higher cost.

What do you think?

Thank you -