Should I 1031 exchange?

[Yael Fuerst]

Hi,

I have a SFH that I will ideally sell for $100K. I purchased this property for $55k all cash and putting in another $20K in renovations to get it ready to sell. I want to upgrade to a multi family or use some of it to purchase land. Am I understanding that I would need to pay taxes on the $25K profit, and if yes, is that worth deferring with a 1031 exchange or just pay the taxes now and have less of a time constraint? TIA