Own 4-plex free and clear. Keep or 1031 exchange?

[THANG BUI]

We own a 4-unit townhome that is appraised for around $1.2 million. 

I just ran the numbers through a calculator and realized that this property returns very little for the amount of equity we have. 

Monthly rent: $6800 ($81600 annual)

Vacancy: 5%

Property tax: $12000/yr

Insurance: $1550

Maintenance & Repairs + Cap Ex: $5000

Utilities (water, gardening, trash, electricity): $4570

Total cash in pocket at end of year: $54000

Cash ROI = 4.53%!! This seems pretty terrible to me!

Should I 1031 exchange this to a larger commercial property? I'm thinking of a medium-sized multifamily (20 units??)