Hold, Sell, 1031 or Refinance?

[Dan Vaughn]

Hello, 

I'm a first time poster, long time reader. I'm posting about a situation I am in with my second deal. I've been pondering the best course of action for about 6 months and thought I'd get BP's advice.

Situation:

I live in a college town and in 2012 I bought a 6 bedroom student rental for $188.5k using a 20% down, 30 year loan. The place was in foreclosure and I spent 1 year fixing it up before moving out and renting to students. I spent about $17k fixing it up. 

So I have roughly $60k into it from the downpayment and the rehab costs. The place now gets the market rate rent of $600 per bedroom per month, or $3600 per month. Against a $1600 mortgage, taxes and insurance payment it is cash flowing very well. 

In today's market the comps have been selling for around $425k. I want to grow my real estate business further (have 2 other investment properties as well), but I'm not sure the best course of action to take in terms of leveraging the large amount of equity I have in this place now. 

I'm considering 1031ing, but it be hard to find another deal cash flowing so well. I could sell, pay taxes and pay off my other two properties or pull a lot of cash out and reduce my cash flow some, but have house money to go buy another property. 

Thoughts?