Remodel or pay it off?

[Landrin Lewien]

Hello all, I’m closing on my rental property, a super cheep house in central Wisconsin only about 10 minutes from my personal house. 2 bed 1 bath closing at $32k I’m putting $8k down payment. The sellers are an older couple that own a few rental properties and are looking to retire and sell there properties. They were renting the house out at $525 a month. The house needs some updates. Paint flooring and some TLC. Everything that I can do myself.

My question is should I spend the money to fix it up or rent it out as is for 525. My payments each month mortgage, tax and insurance included would be less than 300 a month. Should I cash flow $225+a month and pay it off or spend the $5-7K and fix it up and rent it for 600-650 a month? Is it worth it. It’s a small house around 800sqft.