Take the tax free gain and move on.  

I am definitely for passive income over flipping income.

If you attended a seminar to learn about REI and the speaker said squat about the difficult of being a landlord as he enthusiastically pitched the notion that running rentals was the Very Best Way to build passive income...yeah, that's how to goes with REI seminars.5.

I have deed on my rental property worth about $70k. i set up a LLC with it but was trying to gain a line of credit with it to purchase another property to rent or flip.

In order to be eligible to do a 1031 and exempt from FIRPTA withholding the investor must either obtain a withholding certificate certifying the non-recognition of gain from the 1031 in advance from the IRS.   

They get  a 100% passive monthly check which relieves any headaches of the landlord life.3.

Unless you are a turnkey provider or are holding it past 12 months to avoid short term capital gains (even then not sure if it would make sense financially) don't bother refinancing it. 

Natalie said: “It generates passive income…… You don't qualify as a RE pro in term of hours.”Code Section 469 (Passive Activity Losses) is irrelevant to TB discussion under Section 162.Natalie said: “You pay no self employment tax”Code Section 1402 (Self Employment Tax) is irrelevant to TB discussion under Section 162.Finally: Some of the cases I have cited decided what’s a “trade or business” under sections other than 162.

We jumped into a new market and also into a new asset class (mid sized multis) in the last year and it has been great, we have bought a 12/19 and a 32 unit the knowledge I have gained has been amazing. 

Or you can sell it down the road (after 2+ years) and pay zero capital gain tax.