How to know when to Sell or Hold or Develop on property?

[Kirk M.]

Hi there BP Members,

I have a question on how to evaluate when to Sell or Hold or Develop.

Sell or 1031 Exchange a property vs. Hold and Sell at a later time

Sell or 1031 Exchange a property vs. Develop on the site yourself.

I was just notified by a new Real Estate Agent that an investment property I hold can be developed with a density bonus into 88 units. Previous agent stated it can only be developed to 30+ units. Current Rents are at $4000 monthly. Received an offer with previous agent of $3.2M to sell to a developer with 12 month escrow. Developer could not complete escrow and property fell out of contract.

I need help deciding on whether to try an list again and sell OR to hold and wait out the higher interest market for rates to drop with hopes of higher offers OR to develop the site myself and build it out. I have ZERO experience with construction and development. 

What would you do and what is the best option here?  Any help on this would be greatly appreciated. Thank you!