Should i sell or whoesale property?

[Mark Leclair]

i have a property i am deciding wholesaling or keeping myself. It is 3 hours from me but the pros seem to outweigh the cons on this property. if i buy it i can use some cash/some 401k/some credit card ( would get a new one 0% interest for a year and only borrow 33% max) and use the refi or sale when i sell in a year to pay all of that back and should net me around 60k profit total. Downside if something breaks obv i have to fix it, will try to increase the rent as they are way under market value( current rent 1400, market rent min 1600), covid may effect the renters paying or being vacant but i feel like those are small issues when considering the upside. Also if i have this for 1 year exact does that null and void capital gains? I mean the goal would be to 1031 exchange this into something else but i always looks at it from multiple exits.

[Kyle J.]

Holding for a year would not "null and void" capital gains.  You could potentially do a 1031 exchange and defer the taxes on the capital gains.  However, a 1031 exchange involves reinvesting the proceeds in the new property that you've identified for the "like-kind exchange".  So if that's going to be a viable exit strategy, you'll want to make sure you have some other way to get the money necessary to pay off the credit card  (and the 401k if the money taken from it was just a loan) and build your reserves back up. 

Whatever you do, you don't want to stretch yourself too thin because that's how landlords get themselves in trouble.  I can guarantee you that, if you hold this property, unforeseen repairs and capital expenditures WILL come up (likely when you least expect them).

Best of luck whichever path you choose.