https://griffithbarbee.com/the-ins-and-outs-of-recovering-at...https://statutes.capitol.texas.gov/Docs/CP/htm/CP.38.htmEdit:  No I was wrong.

If it’s a homestead, it’s a two-year rights of redemption, this is specific to Texas, I don’t know about other states.

Best thing to do is you should meet with a real estate attorney to go over the specifics of this deal to come up with the best solution to maximize your returns as well as protect you throughout the transaction.

I guess one of the biggest things to consider is how long you plan to be in each specific property.

Let them know - as specifically as possible - what you are trying to achieve.

Wilson - I agree with Kai on using a broker for this specific situation.

Your question is condition and location specific.

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.

Just curious if you had a specific plan in mind?  

Nothing wrong with helping family win.