1031 Exchange or Cash Out Refinance

[Victor Collins]

Hi - I am looking to invest up to my next buy and hold property. I have a pretty good single family home with nice equity. I also have a pretty good tenant and the unit cashflows for $500.  The debt service is almost paid on the property. Does it make sense to give up this cashflowing unit to purchase up? My thought was to take out a cash out refinance to purchase a multi unit or does it make sense to a 1031 exchange for multi unit?  My original thought is to keep the $500 a month, a cash out refinance may only change the mortage by 100 or 200 but I can then afford the downpayment on a multi unit and if the math is right I'd keep this property and be able to cashflow well on a multi unit.