Rental Rehab

[Katherine Young]

We are under contract with a duplex where we will house hack one side and rent out the other. Our monthly mortgage/tax payment/etc will be about $1500. Based on the market, we should be able to rent out the other side for $1200 (as is). The duplex is in great condition but is extremely outdated (wood paneling, pink/green tile, etc). It screams 1950s. The rental market in our area is very favorable area where there aren't a lot of places for rent. My question is, should we fix up the units as time goes on or before we have renters (in hopes for a higher monthly rent)? Is there a good rehab/rent calculation that you all recommend? Also, this is our first rental property so this is all very new to us!