Selling an investment SF - with 200K Pay off my Heloc or 1031 elsewhere?

[Nick Rivers]

I just got tenants out of an aggravating single family I've had for 4 years and fixed it up to sell.   I should net 200K off of this sale.  Property was only netting me $636 a month after all expenses but my interest rate is 3.75%.  Monthly payment $1836.  Rent was $2500 could probably get $3400 now.  I was planning on doing a 1031 into a multi somewhere else but I know I'll be scrambling and with rates where they are I don't know if I'll do much better.

I also have a 200K HELOC balance on my primary residence that I haven't been paying principle at all. That costs me between $850 a month. (fixed for a few years). So this money just feels like it's being thrown away. If I take the 200K I'll get whacked with capital gains also.

I'm a little torn on what to do here and hoping maybe someone has a different way to look at this?