Buy, Rent, Fix THEN Flip?
I have a grand plan in mind for a possibly 1031 exchange in the next year or two and wanted to bounce it off you experts.
1. Bought a buy/hold property in February for $30,000. The property is currently leased at $750/month for 12 months.
2. After the lease is up next April, I would like to put significant money into the property followed by a sale of the property as it is in a redevelopment area where the is happening frequently. I think I can sell it for $100,000 after $30,000 worth of rehab.
Would I qualify for a 1031 exchange for the $40,000(ish) in profit I would be reaping from this deal? Obviously my intent with this property is to hold in my portfolio for the foreseeable future, but if I can squeeze out $40,000 tax free from selling the property one year later I will consider it.
Thanks in advance