Section 8 in bad CA neighborhood (barstow) or SFH out of state?

[Samuel Yi]

Hello all, I have a duplex property in Barstow, CA that I purchased for 85k few years back using my equity line of credit. If I knew BP then, I wouldn't have purchased it, because of barstow neighborhood... (I would say it is D??) Last month, tenants for both units moved out. (They were family). So, I put it on the market and I had a buyer for 125 but the house didn't appraise well. So, I talked to my agent and came to the conclusion that I have 2 options. Convert it to section 8 and collect about 1000~1100 gross income/month. Or Try to sell it for about 100 ~ 110 K and do 1031 to out of state. Out of state would be better neighborhood I assume. I still owe about 70,000 on my line of credit for this property. I would really appreciate your advice. Thank you.