Received a $1M offer on a 16 unit building that I purchased back in March - leaving me with a nice profit.However, I am expecting 30% in short term capital gains between the state and federal and a prepayment penalty of $6000.00.Thus, unless I can 1031 into another deal...this transaction may be tough to put together.Any ideas on how I should source deals and find a way to defer my taxes?

What documents can i expect to receive before I agree and pay my deposit to them?

@Adam YetterI would say if your partner is strictly passive he should receive between 50-75% of cash flow and equity..

Everything went smooth with the purchase and initial property turn over until I received a letter from the HOA management stating they knew that I was going to rent the property and that I had to wait a year before doing so.I was surprised by this requirement.

The seller has an on-site property manager in place receiving free rent for one unit + $1000/mo salary + another unit as an office.

He’s received two full price offers and hasn’t accepted because he wasn’t comfortable.

After receiving the deed I was going to first talk to the association office and gather any info from them about the property and if they think anyone is living in the property.  

All the assistance programs require the landlord to complete a W-9 and receive a 1099 though.  

I included the holding costs because during the rehab I would be incurring those costs without receiving any rent to cover them while the property is vacant.

If he receives an offer from a buyer at full price, without a buyer's agent, I feel like he will push the seller toward that offer.