When to upgrade vs. buy more property

[Davin S.]

I am a relatively new landlord / multi-family investor. I bought one of the worst houses in a good area of town. In this B-level property I have 4 units, one of which I completely renovated when I first bought the property, and was able to raise the rent by $200/mo as a result.

My question pertains to the other 3 units. All of them have rather old, outdated kitchens - chipped, broken linoleum tile, 70's style cabinets with minimal storage space, and older appliances. My thinking is to update the kitchens with tile, nicer cabinets (stock so they don't break the bank), and add dishwashers (popular in our market) - but keep the other appliances until they stop functioning. There are also more minor updates that need to be done like painting (easy) and hardwood refinishing in two of the apartments. Conservatively, I project that I could raise the rent by at least $100 per unit when all is said and done, and of course, nice-looking units will attract reliable, long-term tenants.

On the other hand, am I going over the top? Should I be spending all this money on buying a second property to maximize my cash flow? I am not sure if I feel comfortable managing a second property at this time, especially when the other is unfinished, but I do see the benefits of having a more positive cash flow.

Thanks in advance for the advice!