Obviously, I don't have insight into your full financial situation, but I would have concerns from a risk management perspective about putting all of your hard-earned savings into purchasing a single property or even a single investment of any type. 

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.

Most banks hire 3rd party asset management companies handle the sale, so if you call the bank they will just pass you off - that will be after being tossed around from department to department for two hours. 

This strategic move paid off handsomely as we were able to command higher rents than initially projected.Here are the key financial details of the deal:Purchase Price: $270,000 (jointly with a partner)Financing: Obtained a commercial bank loan with a 30% down payment, 7% interest rate, and a 20-year amortization period.Initial Rents: $1050 and $1250Current Rents: $1400 and pre-leasing for $1500 (making it a 1% rule deal!)

I am a long term buy and holder.I started with 30 year mortgages, but later refinanced into 15 years, and some 10 years when the government adopted the "Home Affordable Refinance Program" (HARP) at very low rates in response to the great financial crisis.

When financing your new home, get pre-approved for a mortgage before listing, showcasing your financial strength to potential sellers.

I kindly ask for 5 minutes of your time to fill out this questionnaire on tenant evictions.Landlords often face risks when leasing properties since the cost of evictions can leave a huge burden on the owner when accounting for legal fees, court costs, financial damages, property damages, and lost rent.

I STILL live at home and my parents are urging me to get out of the house but I don’t want to make a big financial mistake and purchase something out of emotion.

You need to be ready to "pay for" having the asset protection afforded by a LLC. 

If they have $20K in the bank, that would offer additional reassurances of their financial stability.