Cash out Refi or Sell?

[Ryan Adler]

Hello BP!

I am seeking some experience based feedback on whether you would Cash out Refi or Sell the following property. I understand there are variables unique to each individual (tax liability, strategy, liquidity need) and seek these perspectives.

The property was purchased July 27 2020 cash for 59.5k. Property was occupied for 3 months on month to month lease at $1200 / month and vacated end of October. House was in pretty rought shape upon vacancy. Renovation began Nov 4 and completed Dec 11.

Purchase Price: $59,500

Closing: $650

Fire only policy: $670

Taxes (paid through EOY by seller in lieu of transferring Security deposit of $1000)

Maintenance and Repair: $1350

Renovation: $15,400

Income: $3600

3rd party appraisal came back after renovation at $142,000 (3rd party not bank). My lender will do a 75% LTV cash out refi once I season for 6 months (Jan 27). Have never done a cash out refi or "BRRR" but am considering the strategy with a size-able taxable event if property is sold before Jul 27 2021.

Look forward to the feedback and if I left out pertinent information please comment on it.

Thanks!