After finishing rehab for a flip, what do you do next?

[Allen L.]

Hi all,

What do you do after you finish rehab on a property that you intend on selling? I see a few options and want to hear what you do and whether you have any other good options. The point I want is to reduce taxes, because flipping houses doesn't make sense any more on higher marginal tax rates and end up being a waste of energy and focus in my opinion.

1. Sell right away - higher taxes

2. Rent for a year, then sell

3. Lease to own, with the option to sell after 1 year

4. Rent for a year, then do a 1031 exchange

And for those that decide to rent it out for a year, do you refi right away to get money out so you have cash to deploy to another project, or do you think that's too much of a waste on fees since you'll get your money out within like 10 months anyways?