Good dilemma. Investor made offer in my BRRR property

[Patrick Wang]

Hi guys, I just recently bought a property a few months ago that I was planning on BRRR. I had actually just placed the place on Craigslist for rent today. Anyways, I received a letter from a potential buyer. Intrigued, I emailed back and it was some legitimate agent from a well known RE company that represents "investors." He made an offer of $400k on my place and even offered a $15k earnest money to be released after one month. Numbers: Value of property at time of purchase: $315k Loan: $250k Rehab cost: $25k All in: ~$95k Any thoughts and advice would be appreciated.

[Jeff G.]

If the offer was unsolicited, my understanding is you could then use a 1031 to roll that $60k profit into another property, deferring taxes.  (Flippers do not get to use 1031 since their properties are considered inventory, but if your intention was the rent you're not a flipper).

For me, that makes this a pretty clear sell provided you can find another property quickly.