Rental Rehab....Too much or too little?

[Joey H.]

I am under contract to purchase my first rental and I would appreciate some advice on how to scale a rehab on this property. I have rehabbed houses for flipping but that's a different ball game.  The house is currently a 2 bedroom, 1 bath with 2 living rooms. Its in a transitional neighborhood with little old houses and I think the neighborhood has the potential to be a great neighborhood for young families and young professionals moving to the area. The existing bathroom has enough space to be converted into two smaller bathrooms and the second living room could easily be converted into a third bedroom. Since this is my first rental rehab I though I might reach out to get some advice on if its worth the expense of a reno (10k +/-) or if I should clean up the current floor plan and make the most of it. How do you decide how much to reno in a rental rehab?