Avoiding Capital Gains Tax

[Blake Mgbada]

Does this situation sound feasible?

Let's say I completed a live-in-flip as a single person. When I sell my house, I have over $300k profit. I have to pay capital gain tax on the $50k surplus. 

What if I refinanced for $100k before I sell the house. I now have $100k note to pay off. When the house sells, I would essentially pay off the $100k note and make $200k from the sale. This is under the $250k requirement. Now I have $100k from the refinance (paid off) and $200k profit. Theoretically, I believe this may be a way to avoid capital gains tax on any profit over the $250k cap. Thoughts?