Am I over rehabbing my Buy and Hold. HELP

[Andrew Halbert]

Guy/Gals I really need your help. Wife and I are seriously thinking we might be over-rehabbing the latest project. I am starting to wonder if we should just do the minimum needed to get the house rented out. (roof and paint). This rehab will cost 6,500

To do new kitchen, floors, is an extra 12K. I am not in an area that is going to appreciate. This is a cash flow market. My initial thoughts were to do the improvements to try and attract a better tenant, with a higher rent.  But I am second guessing that thought process.

What I am most concerned with now is the ability to get a return on the rehab investment. The roof and paint are really the only absolute necessary items to get a tenant in place. BUT I can't help but think some modern improvements might attract a better tenant??? HOWEVER, I really don't think an extra 12K in improvements will yield more than an extra 50-100 bucks a month to the rent roll. There is not a rental comp in this area going for more than 1050. So is it worth spending 12K to "maybe" get 950 a month vs 900? The previous owner of the house had it rented out for 950 in the condition that it is in now. I kind of think I am being stupid, but I really need someone to talk some sense into me.

This is the home.

http://www.zillow.com/homedetails/25893-Firwood-Ave-Warren-MI-48089/83490689_zpid/