Sell, exchange or keep Bay Area Rental?

[Gayle Eisner]

Good Afternoon:

I own a 3 br, 2 bath 1931 house (duplex) (1100 s/f) and (600 s/f)in a very desirable area of the Bay Area, SF, California. I currently live on one side of the duplex for 5 months a year and rent out this unit for 6-7 months a year.  The 6-7 months I travel for work..The other side is rented most all the time..The house rents for a very good price even though it is old ..it is a very competitive rental market for renters.  I have owned the property for 30 years but have had to retrofit for earthquakes, it is in a high fire danger in the foothills and nickels and dimes me all the time because it is old. Fire insurance is also very expensive... I have put money into things like a necessary new deck, dry rot, new windows (they were only single pane), new flooring, retaining walls etc...just to keep it well maintained.  I also have about a 1/3 acre that is adjoining the property and it costs me $1000-2000 a year to upkeep the trees and shrubbery (fire).  I'm getting older and am considering selling the property, it's just so much work and a lot of maintenance although it is always easy to rent and obtains good income.  Ideally, my thoughts were to use it as monthly retirement income and move elsewhere...

I hear recession is on it's way as well.   Another consideration is that my property taxes are very low and so is my payment.. but my capital gains will be outrageous as I have already used my one time exclusion of $250k. The roof is also 20 years old...So my question is-- should I keep the house and continue to rent till it falls down (just kidding), 1031 exchange it, sell it or ?   So many of you folks have so much experience...I also own another rental property as well if that would be important.  Thank you kindly!