We are about to purchase our first IP. In the suburb we are looking to buy, almost all of the houses are 1970s builds. Mostly ex housing commission stock, brick but on stumps with timber floors. Every one of the properties I have looked at, has been in original condition, almost completely untouched from the day it was built. My assumption is that people of this era didn't fix things unless they were broken. It also seems that the majority of these auctions have been deceased estates. The houses all need a fair bit of work done to make them comfortable for tenants. I would like to know the max $$ amount or % that other experienced investors usually spend on doing up IPs to make them attractive enough to tenant. Is there a max amount you put your foot down at per property? The property we are looking at is around the 400k mark, some good renovated homes in the suburb have recently sold between 500-500k. We are not renovating to sell though, only to make liveable and comfortable (also attractive) for tenants, and to sort of start fresh so that we are not constantly replacing breaking down things. From our rough guesstimates, have not yet sat down and had proper quotes or anything, but to make the property decent, we would need to do the following; (The house is 3 bed, kitchen, lounge, with a small extension which consist of an extra room (possibly could turn into 4th Bed, and a walk through mud room type room, potential second bathroom) -Replace original kitchen with new 4-5k max inc appliances -Replace bathroom (full reno)- this will only cost us materials as we have a bathroom renovation business (also have wholesale trade accounts which will also reduce costs) We can put in a high end look bathroom for around 2k including floor to ceiling tiling doing all labour ourselves (well husband anyway). -Strip all floor coverings, sand and polish floor boards throughout - (currently has carpet and lino, but original timber boards underneath)- expecting this to come under 3k. -Re-paint throughout (don't know how much to expect to pay for this.) -Replace window coverings throughout- probably roller blinds? What ever is most affordable and modern looking. $2000 -Replace heater- heater looks like it from the 70s- feel uneasy leaving it as I would never forgive myself if it was unsafe and I didn't know. Probably just put a cheap split system in? $2500 -Replace HWS? Or relocate it to outside if possible (this is probably more of a want then a must, it just looks a million years old) $$1600? -Install Wardrobes to 2 bedrooms Master already has an old one I want to just paint -Roof- it is a tiled roof looks unsightly, has that mouldy green patchy stuff on it, needs at a minimum a good pressure wash and seal, if budget allowed a re-spray if it wasn't too costly. There is a repair needed where there is a leak between the join where the original house is joined to the new bit. -Garden would just get a tidy up, as would not have much to spend on this. Stumps are good as is the floors, no warping or sinking etc. If I get the house for 370k, I will have 22k left to spend on renovations, Though if it goes for 390k which I am expecting, I will only have about 18k to spend on fixing it up. Are we cutting things way to fine only allowing 18k renovation budget? We are in Melbourne if that makes any difference. Will be sourcing cheap materials on eBay, gumtree and through our wholesalers etc, and doing as much as we can ourselves. I appreciate everyones opinions and would like to hear your experience.