I have an IP which I would like to do major renovations to, and is coming up for vacancy. It is a 2 bedroom unit. I have 2 ideas in mind of how to go about this: Leave vacant for approximately 1 month to get renovation done. This would then come into account when I sell place in future and pay CGT. Rent it short term (1-2 months) to friend/family member who is willing to let renovations occur around them. I would rent for say $50 per week, so during this time would be highly negatively geared, and renovations would be tax deductible. Any advice on this situation would be appreciated. Place is currently rented 310pw, and with renovation would easily fetch 360-380+. And re-sale value would increase significantly.