like winning the lotto

[Jeffery Waicak]

I saw an ad on craigslist about a burned up house in north canton ohio. I texted the seller, got the address and did a drive by. it was about 1900 square feet, 4 bedroom 1 bath, with a detached 2 car garage. the house was across the street from the Hoover building that is being renovated into apartments, retail, etc. the parking lot actually butted up to this property. I made an offer of $6000 and planned to flip it when my current flip was completed,which was still about 2 months out. within a month I received a letter from the investment company doing the Hoover project inquiring about me selling the  property. I called, they called back. I said $20,000 was my price. they accepted and we closed in a few weeks. I think I owned it for about 2 months and had the grass mowed and nothing else. I 1031'd the money into another buy. maybe I should have started higher because they accepted the first offer but had they countered any 16,000 I would have accepted

[Kyle J.]

How did you "1031 the money into another buy" when your intent all along with the initial purchase was to flip it?  If your intent was to flip the property then you did not have the intent to hold it for investment purposes and it wouldn't have met the qualified use test or qualified for 1031 exchange treatment.