I also wanted to benefit from tax saving before the years end with a new property purchase.

Selling and buying something else you want keep and doing a cost seg in would help with the tax burden probably better in this situation.

A HYSA pays 4.5-5%(before rates went down) pre-tax, 3% net tax if you're a high earner. 

example:Purchase Price: $70kRehab: $30kARV: $200kRent: $1,500I can pull out up to $150k but with taxes and insurance I’d be in the red.

It's a more affordable market and lower property taxes, so you may actually have a chance to cash flow.

@Emily Gowen so as you pointed out you would not have to do a 1031 exchange on your current home to avoid the capital gains tax and coupled with what Dave Foster pointed out I think, speaking from experience you would have a high likelihood of success. 

An annual business tax as a hotel of $50 and collection and remittance of transient occupancy tax of 12% from renters is required of all short-term vacation rental operators.

@William TaylorMichigan has some of the most complicated property taxes in the USA.

If you were able to increase the value of the property significantly after the rehab, then you could bring the deal to a community bank  to refinance and take the hard money lender out.You keep all the equity and don’t have to file a partnership return for your annual tax return, which can be costly.  

Thanks for readingDavid $250,000 tax-free?