How much to Rehab Buy and Hold Rental

[Rusty Scott]

So I have an accepted offer on what will be my third rental property. But this is the first I've purchased with the explicit plan to keep as a rental.

Background: The first rental was purchased back in 2006 and was intended to be a flip. Completed the rehab with that in mind, couldn't sell it, and converted it to a rental. It's been a solid rental over these last 7 years. 3 tenants over that time, and the most recent has been there 4+ years and I don't expect them to move anytime.

2nd rental was my own home that I kept as a rental. I did updates/rehabs on that home for myself, and have had the same renter there for 3 years now, and they also want to stay long-term.

This 3rd property is not far from the first one, it's an REO but really is in very solid condition and just needs some cosmetic work. My biggest question is how much do BPs members rehab their long term rentals? Obviously I plan to do some plaster repairs and paint the entire interior. The appliances are ancient and I'll replace those. Also do some updating in the bathroom.

The biggest questions for me is what how far to go in the 1) Kitchen and 2) refinishing the hardwood floors. Neither are what I would consider poor, I'd rate both average. The kitchen cabinets aren't laid out very great and they are dated, but they are solid wood, painted white, and certainly not a total eyesore. The sink and countertops are totally functional, just a bit dated and some loud/odd color (purple) for the countertops.

The hardwoods don't have any damage, but have a decent amount of wear. I refinished them in my 1st rental and they came out nice, but again that was when planning to flip. Not sure if it's really worth it or not.

On the other side, I love the good quality long-term tenants I've managed in my other 2 properties. They treat the homes like their own and even do their own updates and improvements (landscaping, painting, etc...) I'd love to land the same mentality tenant this time around, so maybe it's worth sinking a few extra $k's now?

Thoughts?