Should I sell or keep after tenant moves out?

[Latimer Luis]

Hi BP community -

I'm speaking with tenants later today who presumably will want to move out of the property by the end of the month, purely based on the tone of their text message. They had expressed in the past that they would eventually move to a larger home. They were good tenants, so it's a bummer. My wife and I are due in 6 weeks and so I'll need to make a decision quickly on how to move forward before things get really out-of-hand.

This was my first out-of-state investment property and I purchased it less than 2 years ago (Dec 2017). I didn't hire a PM because I wanted to know the ins and outs of being a landlord and what I'd actually be paying for. Luckily for me, I found decent tenants and never had to consider a PM to this point. My other properties do have a PM though, for what it's worth, so I definitely do see the value of having one.  

The property is in Raleigh, so the appreciation has been decent, which is why the decision is a bit hard for me. The cap rate is low though; thus, cash flow is minimal. Purchased at 187,500 and renting at $1280, but market rate is $1350+.

Should I:
1) sell the property and try and 1031 it, which will allow me to stick to my new MF strategy?
2) hire a PM to continue to rent it out and continue to see how much it'll appreciate? 
3) just sell it without an exchange and just pay the taxes?
4) consider something else?