Renovate & Remodel VS Cash out & Purchase Bigger

[ToRena Webb-Thomas]

GOAL: Higher cash flow

SCENARIO 1: I have (2) 4-Family Properties. They are next to each other and are identical, each have (2) 2-bedroom apts and (2) 1-bedroom apts. I purchased both for $308,000 total in Dec 2015. They all need new kitchens and bathrooms (plumbing included). 1 needs Mold Remediation due to corroding pipes in the basement. The cash flow is positive, all units are rented. We feel like we can remodel and renovate the properties to bring in an additional $2,000/month(by turning one of the 1 bedrooms into a bi level three bedroom by taking advantage of the large pitched roof in each property.)  This means we need to put in money and therefore would have negative cash flow for a period of time. 

Scenario 2: We also have the option of cashing out by selling both properties as is and using the funds to purchase a larger property that has a higher cash flow than what we are currently getting. 

QUESTION: What other factors and numbers do we need to crunch or consider to figure out the best option? Does anyone have a spreadsheet they use to figure this out?