House hack/ live in flip tax optimization

[Andrew S.]

Good morning BP,

I'm currently living in a house hack duplex/ live in flip.

I closed on the property 125k in August, put 10k to make my side 90% complete, then put 7k in the other half. I had my old roommates move in to my half Oct 1st to Nov 15th so I should be able to deduct some of my half's expenses. The other half I should be able to deduct normally. 

My realtor gave me a quick comps for my duplex at ~190k after the renovation. I'm planning to live in it for 2 years to avoid taxes. Possible it will appreciate and I'll fix it up more over 2 years. 

I'm debating if it makes financial sense to get a roommate. I could rent a room for ~$400 per month $4800 per year. If I'm expecting 50k in gains and in the 28% tax bracket - my half 3 bed ~75%? vs other half 1 bed 25%? 

75% of 50k x 28% tax is $9375 in tax due. I'm just doing rough math but it seems like $4800 rent x 2 years isn't worth a $9375 tax bill. And it would make sense to not get a roommate. 

Another question is should I purchase new kitchen cabinets and countertops for my half this year while i have a large deduction already? I assume it doesn't matter because i no longer have roommates so I can't deduct the repairs to my side unless i get a short term roommate?

Thanks for the advice

Andrew