The tax implications of each exit strategy depend on the investor's long-term goals and short-term needs. For example, if an investor is looking to quickly generate cash flow, they may want to consider a buy-and-hold strategy. This strategy would allow them to collect a steady income from the investment for several decades, but it would also mean that they would be subject to capital gains taxes when they eventually sell the property. On the other hand, if an investor is looking to maximize profits, they may want to explore a value-add approach. This approach would allow them to increase the value of the property and potentially reduce their capital gains tax burden when they eventually sell. For more information on capital gains taxes in commercial real estate, please see this article.