Calculating ROI rent before rennovations

[Antonio Montgomery]

Current P&I $841.44 + Taxes/Ins $310 =1,151.60

My realtor ran a Market Analysis, Real AVM came in at 176,150, Real AVM range $156,774-195,527

Using Standard .80-1.1% of home value to determine rental at min of .80 I get $1408.00 (used 176k avm)

PITI 1151.60x12= $13,819.20 annually

Rental Rate $1408.00x12=16896 - 13819.20=3076.8 profit

3076.80/13819.20=.2226x100= 22.26% ROI

The home doesnt need renovation, It could use an updated dishwasher. The items conveyed in the transaction could be replaced. As is the home is move in ready.

The high end value of $195,527 using 1.1% of home value give me a rental rate of $2145 with my PITI only 1151.60

PITI 1151.60x12= $13,819.20 annually

Rental Rate $2145x12=25,740 - 13819.20 piti=11,920.8 profit (which is 86% of my annual PITI paid out)

11,920.8/13819.20=.86% ROI

My question to the experts, at what Cap rate would you forgo additional repairs/updates. Or is it best to do it as you go. Likely w/ updates/repairs I could push for Max avm rental with the home being around 195,527