Eat the capital gains and do some flips? or 1031? Need some feedback, pros and cons.

[Mat Lewczenko]

I'm receiving a contract on my multifamily (6unit) that we have had now for 10 months. It was a dump, fixed it up and now it is 100% occupied, stable and cash-flowing. My cashflow after all expenses, debt service and capital reserves is about $700/mo.

I currently stand to make about $60k on the deal - with $40k taxable above my basis in the property. So my I'm reaching out to BP for some pros and cons of either eating the tax and using those funds to flip a couple properties, or 1031 the funds into another deal.

Thanks in advance for the feedback.