So there are a few ways to look at this, the 1st question is are you sure your renovation’s will double the property value, most renovations on primary residences, your lucky to get 60-70% of the dollar cost back out upon sale, so really nail down your comps, than you have basically a math problem if your rate on your primary goes up how long if ever before that extra payment is more than 400k in taxes, that’s just a simple calculation to help you decide, but I suspect you actually have a different question here, from a purely financial perspective my guess is the best option is to do anything to avoid that tax hit, but one of the reasons to make money is to spend it on things that you enjoy, based on your overall financial picture and a subjective view of how much enjoyment you will get out of a renovated home, you should decide if you want to roll your profit into another deal or “cash-out” your winnings, I love cars and I’m willing to spend more than is fiscally smart on them because they bring me joy, there is nothing wrong with that, but i don’t think it’s a fiscally smart choice, without knowing your exact property id imagine a renovation would fall into that category, so that’s the terms I would use to decide.

***NOTE: I would not recommend this if you have a large portfolio, do not live within proximity of your rentals, drive an expensive car, or doesn't want to actively manage properties.The main idea here is to not list your personal addresses on public documents (i.e.

I own my car.

Is the car they are driving have trash or clothes thrown all over the place?

Selling a house will be as easy as selling a used car . 

Each unit is 3 bed, 2.5 bath, about 1630sq ft plus an attached 2 car garage.

would you sell your car to someone without a deposit who promises to pay for it in a couple of weeks?

Again, you can typically walk through and see that what they've left is junk they couldn't fit in their car.

Its like buying a used car.... you can never be sure what you may get.

You need income of $6300 or more if you have a car loan/student loans/credit cards.