What do I do with 80's style wood paneling in basement

[Brady Alford]

I'm currently rehabbing a house and the basement is completely 80's style - red carpet, wood paneling for walls... you know the type.

What's the best method to deal with the wood paneling. Is it to tear down and drywall? Or would painting the paneling white (after using an adhesion primer) sufficient. It's a 1,000 SF house looking for an ARV of ~$150,000... so nothing super high end.

Thanks

[J. Martin]

I've seen well-painted white paneling that has done OK with lower-end properties. What does the market demand? Can you get your money back on the investment? What do the other sold houses look like? Do they have ugly wood paneling, and yours would be better if it was white? Or do most have drywall, and the painted white paneling would be inferior?

You can also test one area real quick and see what it looks like..

Just a couple thoughts..

Pictures help! And locals can you give you more local market advice..