Sell or hold? Sec 121 exemption window closing soon!

[Michael John]

Two-family home in HCOL area worth $1M

$500K owed on mortgage

$3500/mo PITI

$6000/mo rental income

Have opportunity to sell now; unit 1 would be exempt from capital gains tax via sec 121 exemption (lived in 2 of last 5 years)

Would 1031 exchange profits from unit 2 into new investment property (anticipating $500K range with ~$3K in rental income)

Would also consider buying a new primary residence and renting out current property, which could get about $3K monthly rent

If I sell now, I could save upwards of $50K in taxes. House is about 10 years old and expenses & maintenance costs will likely start to ramp up in the coming years.

Market is hot now but who knows what covid could do. Property is in a metropolitan commuter area.

Cashout refi is not an option as rates are close to 4% plus 1.5 points since it's an investment, and max LTV is only 70%

Your wisdom is welcome!