1031 exchange

[Marcus Johnson]

I'm about to buy a property that is a short sale. My question is that I'm still debating whether or not to buy and hold or to flip the home. I already have the math figured out on both ideas, but my question is more on how a 1031 exchange would work. So let's say we decide to flip this home and have 30k net profit in the end, but want to roll this over into another property to flip. After we sell the home where does the money go until we find another home to buy and flip? I don't want to pay the taxes on it yet and wait for the 2 year period to only pay the 15% on the money. Does it go to a third party and if so, who is that? Also, when do I fill out the 1031 form? Tax time?