The 365 day timeline is certainly there but if your intent is to flip and the pattern is a flip, couldn’t the 1031 be denied?

____________________________________"No one is going to give you thousands of dollars worth fact pattern specific consulting for free here on BP."

Hello Gadiel,I'm struggling with the same situation and well the only constant pattern I keep hearing from the investor that bought property in the 2000-2006 that did not lose their shirt is that they invested base on cash flow and not appreciation.

Otherwise you are going to keep seeing the same pattern over and over again. 

I've written about this migration pattern extensively here on BP:https://www.biggerpockets.com/forums/621/topics/396725-millennial-migration-to-sacramento-2017---here-comes-the-rushEvery week I analyze every single 2-4 unit multifamily property from Placer county all the way down to Merced, and here are the numbers you can expect from the better performing properties here in Sacramento county:PRICE: ~$306k25% DOWN: ~ $76.5kMONTHLY RENTS: ~$2,250ANNUAL RENTS: ~$27,000PITI @ 5% w/ 25% DOWN: ~$1,640PITI CASHFLOW MONTHLY: ~$610PITI CASHFLOW YEARLY: ~$7,3201% TEST: 0.74%GROSS ANNUAL YIELD: 8.92%PITI CASH ON CASH RETURN: 9.95%If you ever have any questions, or simply want to reach out and connect with other local investors and real estate professionals, simply join the conversation already going on in the local forums here on Bigger Pockets for Sacramento:https://www.biggerpockets.com/forums/621-sacramento-real-estate-forumFeel free to reach out if you have any questions about the Sacramento market, and best of luck!

(5) Whether for another or themselves, engages in a pattern of business of buying, selling, offering to buy or sell, marketing for sale, exchanging, or otherwise dealing in contracts, including assignable contracts for the purchase or sale of, or options on real estate or improvements thereon.

It is hard to find sound tax advice online, mostly because the fact pattern drives the discussion a lot and everyone's situation is pretty different.  

Source: I think I have that exact same pattern on the one I have.

Sometimes we notice a pattern when the same appraiser(s) brings values in lower consistently. 

Do you look at their bank accounts and spending patterns?