Flipping fund or 1031 exchange into Multifamily? Help Please.

[Mike Terry]

I am putting a vacation rental property on the market because I have a lot of equity in it. The Short Term rental returns are not satisfactory (approx 2.5% return, cash flow 400/month).  I am trying to make a decision on optimizing the proceeds.  I am leaning toward a 1031 exchange into a small multifamily or roll the money into a flipping fund to start completing some flips in cash rather than current hard money.  In my market we are averaging 13% cash on cash returns on hard money financed flips and 19% on cash deals.  Any assistance in helping me frame this decision would be helpful.  I am 51 years old and eyeing financial freedom and moving toward real estate full time.  I think the tax implicatons of flipping vs multifamily are obvious.  In addiditon I am in Southwest Florida and multifamily properties are hard to come by and very expensive.  I would consider a more affordable wouth eastern US market.  Any and all input is welcomed.