Everything will cost more than you estimate, the job will take longer, and there will be unexpected problems.

I think modern light fixtures, new switches and outlets, subway tile backsplash, stainless steel appliances, clean and newer bathroom fixtures are all worth their weight in gold. 

You have a great home and there are great prospects who would love to live there, but unfortunately life takes unexpected turns that makes it difficult for even good tenants.

Hi @Christopher WinklerThe biggest problem with just putting drywall over the paneling is the thickness, your windows/outlets, door frames etc will be an additional 3/8 inch thick.

Bank will give you 75% LTV but you want to pack 5% in there for the unexpected, and trust me there will always be unexpecteds. 

In general you are looking at 15k-25k for 2-3 br. for paint, ceilings, carpet, appliances, granite counters, outlets, plumbing, repairs, light fixtures, bath vanity, toilet.

.… that just happens to utilize buildings as the outlet.

If I have a more financially stable prospective tenant, I note that on their applicationAs far as a qualified building, I have not converted a home and tried to jump through their hoops but I have found that in some case their little things are actually good for me (i.e. such as a tenant that removed a GFI from the bathroom and replaced it with a normal outlet.) 

Correct that, and you're in.I've had crappy property managers, friends telling me I didn't know what I was doing, 8+ banks telling me "no", existing bank that told me "yes" get bought out after I had just 2 properties with them to turn around and tell me "no more properties", 2 break ins, $5,000 worth of unexpected insurance deductibles, city inspection reports that I have to pay for, late tenants, screw up with my CPA that almost derailed a deal, unexpected "repairs" that were clearly not needed that my property manager not only approved without telling me, but was WAY overpriced.  

Electrical: You need space and capacity in your electrical panel for one new 220V circuit for a dryer, and one new 110V circuit for a washer (some stackable units just require a single 220V outlet).