Rehab or Flip and Tax Implications

[Rick J.]

I am very new to real estate investing. Apart from owing my own home, I decided to buy a home in a  "war zone" sight unseen for $54k cash. After 3 months of waiting on a lengthy eviction, the home is finally empty but it's in terrible shape. They basically lived in squalor and I would have to demolish at least 60-70% of the house and rebuild.

An investor called me today and said that he will buy it off my hands for $70k.

I am not a flipper. I was genuinely wanting to rehab my first home and rent it, but this may be too big a project.

My question is:

1. If I sell the home and make $16k in profit, would I owe uncle Sam 35-40% in taxes for a short-term flip based on my w2 bracket?

2. If yes, would it make sense to just board up the house, buy insurance on it, and sell after a year for a 1031 exchange?

3. Or if you were me, would you rather take the cash today? (Time value of $)

Thank you so much in advance.