Older home - Full gut? Work with what's existing?

[Douglas Depte]

Good day! I am a real estate investor that focuses on BRRRR mainly. However since I have a few properties already, before my wife and I got married she picked up a triplex with the 203k FHA rehab loan. We just refinanced, pulled $20k out. We are going to move out of the triplex and in to our own single family. My wife will get another 203k FHA loan to fix up the single family.

The house is 2500 sqft, well built home, in good condition, really just needs cosmetics. My wife wants the house to look immaculate like the other newly flipped homes in the area. The wood trim, crown molding, window frames and baseboards all are original and in good shape.  

The electrical panel had been updated to a 200 amp service, new boiler has been updated in 2011, new water heater. The roof has been replaced in 2011. No central air

Ceilings, walls are all in good shape. However about 20% of the house is wall paper over plaster. Floors are in good shape but we will redo them throughout the house. 

We plan on being in the house for a very long time.

Questions:

We want central air, open up a few walls, expand the bathroom, new high end kitchen...

Should we just do a full gut down to the studs, make everything new again?

Should we just gut portions of the house and fix what's existing?

Houses in the neighborhood fully rehabbed are going for $360k. We will be getting this one for $140k. 

Please let me know your thoughts. 

Thanks team!

Doug Depte