Sell our rental and cash out or keep as a long term investment?

[Suzi Curtis]

Hi,

I've never done this before.  We got lucky and purchased our first rental home a year ago.  We have been renting it short term as a vacation rental and it has been a great investment: after all expenses it will net profit $15-$20K this year.  Yes, it is a lot of work because I manage the bookings and do the cleaning.  The market is nuts in our college town and we could now sell the house and make $120,000 in one year.  I would like to take the money and reinvest into another fixer upper.  What advice do you have?  Keep the rental and continue to work it for a long term investment or sell it, take the cash (less capital gains, 366 days of ownership) and reinvest into flipping (which is what I love to do).    Thank you for any and all advice!