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If it is in poor shape, a light reno might not add much value since the next owner will do a full reno on top of anything you do.
It might also be worth more without a tenant if it needs a full reno. Sounds like this could be the case if it still has popcorn ceilings.
On this basis, another option is no reno and hire a company to AirBNB it for you, then sell after the capital gains become long term.
Personally I’d never pay STCG on real estate.