You take all of it but make sure you put 25-30% of it away for taxes.

And if there is a "why" then the 1031 is what you want to use to get into a new property and defer all tax.  

Heir, preforeclosure, foreclosure, divorce, absentee, rundown, can't keep up with maintenance, overdue taxes and liens, the list is endless.Don't try to force an offer on them, get to know them and keep following up.

Have some real estate under my belt but looking into Short term rentals opposed to long term rentals.Wondering if there is a stand out book to read to gain understanding for Australian Short Term rental market/AIRBNB.Also if there is a specific group for Australians and short term rentals for Australian market/Australian tax system etc, do point me to that.Rod

So the actual tax bill is going to be impossible to predict without looking at the individual owners' personal tax situation.How much of a gain do you think you made on your first flip?

Every deal is different, and every person is looking for different marginsAfter Repair Value (ARV) - Rehab Costs - Purchase Price - Fees (holding costs, closing costs, selling fees) = Net Profit (before taxes).Are you ok with the net profit based on how long it's gonna take from start to closing? 

As expenses fluctuate (property taxes, insurance, maintenance items, etc), the cash flow will be up and down and unreliable.

Then you can do a 1031 exchange or sell it at a lower tax rate. 

We do not factor in capital gains tax in our final net profit projection Hope that helps!  

However, I do not know who this could be beyond a property manager which would not work in my case since I am looking to self manage for both tax (material participation in STR loophole) and profitability reasons.