To renovate or not renovate?

[Asha Carpenter]

I recently acquired a two family home: 1 bed/1 bath and 3 bed/2 bath. Across the street, a brand new apartment building are completing their build and rentals will be available in April. Their rental prices are: 1 Bedroom from $1695, 3 bed and 2 bath from $2600 meaning my rental prices will have to be significantly less.

The area has a lot of potential but not developed as of yet. The multi-family is in good shape just needs a bit of paint and the floors need to be sanded. However, the kitchen could do with some upgrading. Even with the upgrading, my rental income will still be capped (1bed $1500, 3 bed $2300). Appliances will be upgraded.

Do I spend the money now and upgrade the kitchen even though it won't increase my rental income or should I wait until the area has developed more so the money I invest in the kitchen will actually give be a better return in my rental income?