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Updated over 5 years ago on . Most recent reply
100k from flip, not wanting to invest in new property yet
Hi BiggerPockets Crew,
I currently live in Chicago and my unit is about to be sold in a multi-unit buyout for about a $100k profit. I've lived in the property for about 6 months with the intent of staying here for 1 year. The closing of the properties would start in about 6 months and with 901 units in the building it may take a while to close on my unit.
With that said, I am planning on moving to Seattle in about 6 months where I would rent for a year, as I'm not sure how long I want to stay in Seattle. Assuming the $100k profit, how can I strategize to pay as little tax on this as possible? I'm familiar with the 1031 exchange, but I would not break even purchasing a property in Seattle and managing a property in Chicago from Seattle does not seem very feasible as property management companies would eat into my monthly cash flow.
Happy to hear suggestions!