Old house update vs selling

[Jason V.]

I have a three family house built in 1900 that needs updating. The inside of the house looks great and is good shape, but the wiring in the walls is knob and tube and will need replacement in the near future. The panels were previously replaced with most of the knob and tube in the basement removed. Some additional bathroom outlets were updated too. The driveway is also at the end of its life and will need replacement soon. 

The estimates for both jobs will be a total of around $30,000.00. The house rents for $2,000.00 a month. Expenses are around $1,400.00. The house is worth about $260,000.00 and has a mortgage of around $107,000 left. @4%. 

My question is should I go through and update the property to keep it or upgrade to a newer future property with a 1031 exchange, most likely offsetting the value of the sale house with repair concessions. It's getting tougher to find properties that will cash flow well and the timeframe of finding a like replacement property in this market concerns me. 

I think I know the answer, but want to get some guidance from the great folks at Biggerpockets. 

[Malcomb Stapel]

Quote from @Jason V.:

@Malcomb Stapel That may be the route that I will go, as it would cover my expenses  and still cash flow. 

@Zachary Inman The 1031 constrains are a big concern of mine. The 45 day window seems like a challenge. 

Thanks for all the replies. 

Per @Dave Foster I believe you have 45 days to declare your list, and 6 months to buy.