What to do with a SFH in SF Bay Area with negative cash flow?

[Jeff C.]

Hi, all,

I am new on BP and looking forward to learn from the BP Community. I am trying to decide what to do with a SFH with negative cash flow. I purchased it at the height of the housing market for about $790k. It is now worth about $900k on Zillow. The equity is about $450k. It has been a rental for 8 years and has always had a negative cash flow. Currently it is about $700 - $800 negative a month. The annual appreciation is about 3%.
I am wondering if I should: 

1) sell it and use the proceeds to invest in a income property with positive cash flow (due to the negative cash flow over the years, I would need to pay very little capital gains tax)

2) hold onto it and pay it off in 15 -20 years

3) cash out refinance and use the equity to invest in another property with positive cash flow

4)  Do a 1031 exchange

5)other options?

I appreciate your feedback.  Thank you.

Jeff