Definitely a question for a tax attorney/accountant, especially with the dollar amounts involved. 

If you do not reinvest all the proceeds, any excess amount not reinvested is immediately taxable.

With that amount saved up you could buy something and still comfortably make cosmetic updates and have reserves. 

If you were the Tenant you would want to be doing what you can to help limit the amount of money that they owe.

Between carrying costs, having to potentially raise equity and/or utilizing debt during the pre-development period  had I settled plus associated time, I  probably would have spent a similar amount of money.

Some of these new age syndicators are raising money in incredibly small amounts and I believe are intentionally pursuing these smaller dollar amounts because of the unsophisticated individual behind those dollars.

Ask yourself if the IRS tried to say you were over/underpaying and they want $ from you, could you defend the lease amount?

Do you know your actual amount of taxable profit on the flip?

We have a decent amount saved up and have thought about doing a out of state deal but might be good to do a deal near me to start out. 

I'm 2 miles from 2 hospitals (one is Swedish and I've heard that they get a fair amount of travelers) and within walking distance to Denver University.