Decision point on EaDo SFH rental

[Felipe Mondragon]

Hello all. Long time lurker, first time poster. I'm at a crossroads with an EaDo SFH rental and would like some of your input. I've been holding it since 2012. It's been a good ride, however rents have stagnated and I'm eager to move the equity elsewhere. The way I see it there are three options: 1. Sell 2. 1031 exchange into a small multifamily 3. Continue holding.

If I sell today I'll be hit with depreciation recapture and capital gains. I'd prefer to 1031 into something else, however I'd have to find the deal first (slim pickings at the moment). If I hold and ride this stagnation period out, things may improve in a few months. I'm leaning towards option 2, as the tax hit would be significant (15-20k) and I don't see rents going much higher for several years in EaDo.

What am I missing? Looking forward to reading your thoughts.