Decesions on level of upgrades

[Brent Rogers]

I acquired a small property in a class A neighborhood that has experienced skyrocketing appreciation (at least for the south).  I usually buy for cash flow but bought this one with some thought toward appreciation.  It's one of those that has ok numbers as a rental and ok numbers as a flip today.  My thinking is to rent it 2 - 4 years and then possibly sell.  It's a small home (1500 SF) with 3 BR 2.5BA.  It would need very little work to put in place as a rental - paint, replace BR carpet, possibly replace some appliances/toliets and possibly paint kitchen cabinets.  If I were to flip I would probably need to update baths and do a little more in the kitchen.

If my plan is to only keep the house that long should I go ahead and update to flip level or do the minimum and do further updates just before selling?  I think the answer is do enough to get a good rent rate now and hold off on full updating but wanted to hear from others.

I am most undecided about the bedroom flooring.  It's three small bedrooms with carpet that I need to tear out.  The rest of the house is hardwoods everywhere except the bathrooms which are tiled.  Should I put in economical carpet or go ahead and put flooring in as if I were flipping now?  Maybe that is carpet but I'm not sure.  I could do hardwoods but it seems like it would be hard to make them match existing hardwoods unless I refinished the whole house.  That's expensive and I hate to do that for a rental as they are in decent shape.

This is only my third property and first one I consider a "tweener" as far as flip/rental.

Thoughts?