1031 exchange and intent

[Philip Cook]

I'm trying to start and grow my real estate portfolio. Right now I'm digging into a foreclosure and looking at exit strategies. I want to get cash out of it to finance the purchase of other properties. I am looking at the numbers on flipping it and paying the capital gains taxes vs BRRRR and 1031 after a year. The numbers don't work for a long term rental, but I could cash flow for a year with an interest only loan.

I just learned that with a 1031 the IRS looks at intent and that it doesn't matter how long you hold if your intent is to sell. So can I do a 1031 if I buy it, do any needed repairs, rent it for 12 months, and list it after the tenants leave?