Where do I put my rehab money?

[Laurie Chimento]

Hi everyone, 

We have an accepted offer on our first rental property and plan to do the brrr strategy.  The inspection is tomorrow, but we already discovered a few days ago that the house has cast iron pipes at least partially under the house and likely leading to the sewer. The house was built in the early fifties.  The GC I had look at the house said the cast iron pipes of this age have lots of problems and I should fix this. Because I have no experience with the house, I have no idea if they really need to be changed, but I've read a lot of posts about pipes of this age having issues. Between fixing the under house pipes and digging up the yard to the sewer, we are talking $10k. 

On the inside, the house needs a kitchen (barely has one), drywall repair and some replacement, paint, some new flooring, and refinishing the hardwoods. Also the electric box needs to be rewired (quote on that was $1500). 

If I want to brrr this, I obviously need to put some money into places that will matter to an appraiser. So, on my limited budget and given the pipes/electric box expenses, what advice would you give on where I put the money?  

Do I risk it on the pipes? Maybe only change what is under the house and wait on digging up the yard?

Thanks for the feedback!