When to Replace Appliances - Before First Tenant or Later?

[Ernie Cruz]

So I was having a conversation with my wife last night about a potential rental property and we came to a fork in the road: If you were going to purchase a unit to rent, and the property needed some light cosmetic work, how far would you go in remodeling the property?

Would you fix up some drywall, maybe replace a corner of carpet or a few floor tiles and repaint, etc. or would you go above and beyond and go as far as replacing the existing appliances and washer/dryer too?

On the one hand you could replace the appliances that are a little old yet still function so that if it breaks while you have a tenant, you won't be rushed to buy one and miss out on the opportunity to shop around for the best deal. 

On the other hand, all of the analysis you put into evaluating the property may already include saving up for things like repairs or cap ex (I know cap ex is meant for big ticket items, but just saying).

What would you do?