Are you allowed to do a 1031 exchange from a flip to a rental? From what I read, it seems like a grey area doing a 1031 on a flip.
The answer is no. I don't know of any grey area. However, if you rent it out for a year or two first, better if it's 2, then 1031, then yes.
Flipping is ordinary income subject to self employment taxes in most situation.
A flip does not qualify fora 1031.
As mentioned if converted to a rental for a bit then it potentially can
@Steven Cowles , It looks gray because there is no statutory holding period. The standard is what your intent was. But that is not gray - either your intent was to hold for productive use and that can be demonstrated. In which case you can do a 1031. Or your intent was to flip (which will be evident) and you can't use the 1031.
Most folks feel comfortable at any period more than a year. But there could be situations where a holding period of less than or more than one year would be justified.
But the gray is only perception.