Should I flip or rent a property

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@Brad Klock I am a buy and hold residual income all the way guy, so take my advice with that grain of salt. i would rent that all day, unless you have reason to believe the market has peaked and the neighborhood will soon be declining. Transaction costs and taxes remove so much wealth from investors. I do sell, don't get me wrong, but usually when the property is a headache or I am just spread too thin. I sold / exchanged 6 properties last year and am under contract on my 2nd this year so far. Valuations have put my little rentals into .5% return territory vs your 2%. If you intended to hold this for rent (productive use), it should be eligible to exchange. Ask your title co or agent for a recommendation. On BP @Dave Foster is my go-to 1031 expert and may chime in. Good problem to have. Well done on this deal! I'd hold as another step toward your 20 unit goal.

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@Brad Klock, That's a pretty decent rental. 1031 is great to diversify and scale growth because you're using 100% of the equity and all of the deferred tax to build your own portfolio. But you've got another ace here that no one is talking about.That guy wanting you to rent to own to his son is a Hallmark Christmas miracle waiting to happen. If you put his son in there with a lease and an option to purchase here's what you could end up with:1. Make father sign personally along with son - you just got double the recourse.2 Make a strike price that includes a factor for a year or two os appreciation - If it's worth 70 know give them the two year option at $77K. Build in some more profit.3. Build in rent escalations over those years as well.4. Sell the option to purchase to them (this will be taxable) and use that money to buy another property.5. You get a higher price, more security, money to keep growing, and when they execute the option you can still 1031 and defer all of the profit anyway.

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Sell if you want cash. Rent if you want to build wealth.

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Can you do rent to own? Collect a down payment of 10k, collect rent for $700, and have an option that they can purchase at 75k in the next 2 years (or whatever you think it could appreciate to in 2 years). You get your cash flow, you hold it long enough that you can do the 1031, and you sell it to collect your profit a little later down the line.

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@Dave FosterGreat advice

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I think you shouldn't waver on your goal because of the instant shinning 30k cash. Now, if you are somewhat confident that you can 1031 exchange into say two more properties with this one sale, then do it. If you aren't sure you will be able to buy another bigger or better property then keep it rented. Wealth building can sometimes be long, boring and slow especially in the real estate investing world. Remember, there are no right or wrong answers to these questions, IMO.

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@Brad Klock good problems to have at least! Sounds like you’re on a great real estate path. My thought would be to take a step back and analyze what your overall long term goal is. And I mean bigger than doors or cash. What do you want life to look like in 20 years, what’s your ideal day at that time. Then work back from there. Then if rentals gets you there continue down that path, or if the profit now helps get you there then sell away! I’ve found it easier to make decisions now when the end goal is clear!

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Timing and selling at what you believe is a market top is a valid reason. As is wanting to transition to MF. I'm doing the same. Planned to keep a little free and clear rural rental until the cows came home. I bought it for $90 a couple years ago. Tenant moved out and had a realtor friend give me a CMA. $235. What? Yeah, list that puppy. It only rents for like $1k/mo. I'm exchanging into a quad closer in.

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@Brad Klock If the numbers work you might be able to brrrr a little bit out of it with a refinance, right? That could be a down payment or renovation on another property and still add end up building your portfolio.

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@Brad Klock some really good advice already on this thread. The good news is you really can't make a wrong choice. You already established a goal which is to own 20 units free and clear and then scale up to larger multi-family. If that goal is still current then I would hold the property. You can always BRRRR it if you need cash. HOWEVER, I would sell it if you find a larger multi-family property to invest in that provides a greater ROI.