18-Unit Rehab: Replace Panel Walls with Drywall or Just Paint?

[Tony S.]

Hi all,

I'm wrestling with a rehab question regarding panel walls.  I'm about to purchase an 18-Unit apartment complex with full panel walls and popcorn ceiling.  

What is everyone's view on panel walls?  Of course it's cheaper to just paint over the panel walls and remove the popcorn ceiling (which is what I was planning to do), but now I'm wondering whether it's worth the $60,000 investment to remove all panel walls and replace with fresh drywall and fresh paint in every unit.  I'm planning to keep these units long-term.

Currently each unit is 2 beds/1 bath and they rent for $600/unit.  I'm planning to raise rents to $1,045/Unit after a light rehab.

Thoughts or opinions?