Rehab advice (Small Condo)

[Thomas Sulz]

Hi All, 

Below is a pic of the inside of a small condo located in Marathon Florida that I am looking to rehab and flip. The property was a hand me down from my parents after a long-term tenant had recently passed away. As you can see, the place needs a lot of work. I am planning to replace the carpets with luxury vinyl flooring in both the living space shown in the picture and the bedroom. My main concern is the wooden paneling being used for the walls. I have two options: 1) I can leave the paneling and apply a fresh coat of paint over it or 2) Remove all the wood paneling and replace it with sheetrock and paint. In my opinion the conventional sheetrock and paint is more aesthetically pleasing but would be the much more expensive option. Does anyone know if leaving the wood paneling would have any "negative" consequences on the property other than it giving the place somewhat of an outdated look? Same question would apply to the drop ceiling shown in the pic. Is the cost of demoing the place and replacing with conventional sheetrock typically worth it in cases like this?

Any feedback would be greatly appreciated. Thanks!