Does Renovation Make Sense in this scenario?

[Sheena Varghese]

Looking for Advice:

I have a 1000 sq ft, 2/1 with garage and sunroom property that I bought for $30K a while ago and has been rented out for the past 6 years. I am getting $1,100 a month. I refinanced the property couple of years after buying and pulled out $75K and put in about $38K in repairs (net $37K).

The last hurricane (FL) took out some of the windows in the sunroom and is currently boarded up. Bathroom and kitchen need renovated, has never been updated. Kitchen is very small (about 50 sq dt). The garage currently houses a half bath, laundry space and doesn’t have a ceiling. The house has crawl space and garage doesn’t so it sits lower and has two stairs from the house to enter the garage.

I am looking to renovate this property and was hoping for some advice/insight to see how much I should spend on the renovation. Thinking about return on investment. It will take years to recoup the money spent. I definitely need to redo the sunroom and a new roof is due very soon. I was thinking of either:

1. New roof, converting the sunroom into a bedroom and updating the bathroom and kitchen- around $25k - will get around $400 more monthly - 5.2 years to get money back

1. New roof, extend the kitchen into sunroom and update, update bathroom, refinish garage and add a bedroom, update garage bathroom to full bath - around $45K - $650 more monthly - 5.7 years to get money back.

Or should I just fix what’s broken and leave it be?

If you have read this far, thank you! =)