Should I use cash flow to improve property

[Kevin Sage]

I am recently in contract for my first property, a college rental that was built in the 1950s. The property has great cash flow, but is drastically outdated and need repairs inside and out. My questions is should I keep my cash flow (profit) to maintain the the COC return 11% or use it to make the necessary repairs to the property. Personally, I do not require the cash flow for living, just looking how to put it to its best use. BTW, comparable houses that are updated inside and out look like they are selling for at least $45,000 + compared to my property. I appreciate any advice.