STR + Flip - does it work?

[Pathik Thakkar]

This is for the bay area, and here's what I am hoping to do 

- buy a fixer upper for 900k 
- Cost seg - write off (675k)
- Spend 200k in improvements
- 30k in furnishings

How does the 200k in improvements play in taxes? Can i write it off in the first year?

Also is it possible to convert this to LTR or primary residence after a couple of years? 
I know i wont break even in the cash flow but tax refund might be enough to cover.