To sell (1031) or not to sell

[Greg Clatterbuck]

Looking for critical feedback.

I currently own a property (10 years) that is valued at $215k, mortgage of $100k currently cash flowing approx. $600/month (not including cap ex, vacancy, maintenance).  I self manage the property as it is near where I live and takes minimal effort.   The tenant would like to purchase the property.  If I keep the property, it will need approximately $5-7k in repairs (carpet, paint, etc) and an HVAC (13 years old) at a cost of $5k.  

I am currently making an offer on a pair of duplexes out of state that I could 1031 into, however, already cash available to complete that purchase without selling current property.  If I sell and 1031, I will use the cash on hand to purchase another property.

If I keep the property, I can do a cash out refinance for approx $50-60k, although the current interest rate is 3.75%.  

My long term goal/investment strategy is buy and hold.  I have never sold a property previously.  

Thoughts/Recommendations ??

Thanks

[Greg Clatterbuck]

@Clayton Mobley, @Dave Foster, @Bill B.

Thank you all for the feedback.  I had a direction I wanted to go, but wanted to hear other opinions.  I will work the deal to sell to the tenant and 1031 into the new multi-family and keep cash on hand that I was going to originally purchase with.  With the uncertainty of the market, I think would prefer to keep some cash on hand.