Should I rehab one of the duplex’s even if it cash flowing now?

[Andrew Strauss]

Hey BP team,

I have this situation where the property I have in LA county has 1 duplex with the ability to add an ADU as well. Both units are rented bring a little cash flow $50 a month. The one home is 1929 it as tenants in it, but it needs a total upgrade/power only 50 amps/nothing is up to code and it 2bd/1ba. I have people in there now paying 2k , but I was thinking of a total remodel of the place where I could get $2,400 - $2,600 per month.

The question I have is would it be worth doing the upgrade to this unit being out of pocket 8 months of rent + $250k for the upgrade? or should I let just go? Should I just take the $250k I would put into this place and find another? 

The other thing on the property is I can add an ADU as well, and I was thinking If I add that and then do the property upgrade on the one home.

My question is how do you calculate the value of making these upgrades, and is worth doing this or taking that extra money and going to buy another place? 

Any help would be great.