Ipswich - what to do with my IP?

I have some $$ tied up in a house in Ipswich and want to maximise it's potential and withdraw some equity.

It's a 2 bed workers cottage on a flat, largish block (just over 600m2) in Eastern Heights. Purchased for $165k in 2012, valued at $240k now. It's in average condition, and has been consistently tenanted for the past 5 years - slightly positively geared.

The house is at the front of the block, and there's good vehicle access down the side into a big backyard. It's zoned Character Housing Low Density, so apartments aren't an option.

3 bed houses in the area rent for $260-320/week, and sell for anywhere from mid-200s (unrenovated cottages) to mid-400s (renovated Qlders)

4 bed houses in the area rent for around $360/week and sell for mid-300s to 500k+ depending on quality.

So, my question is: what's the most effective strategy to increase equity with relatively low risk? Options I'm considering:

1. Sell without doing anything further. This would realise roughly $70k in capital gain before tax.

2. Spend say $30k on a cosmetic reno (bathroom, kitchen, paint) and sell for about $290k. This would realise roughly $90k gain before tax.

3. Major renovation to lift the house, add 2 bedrooms and a back deck and garage. Guesstimate cost would be $200k. Sell for (hopefully!) $500k, for a gain of roughly $120k.

4. Something else. Granny flat? Hold for another 10 years?! I'm open to suggestions!

I guess my question is, what do you think of the above options? How accurate are my assumptions re cost and sale value (this part of Ipswich is a reasonably small market)? Is there another option?

I'm interesting in hearing from experienced renovators/investors, especially if you have property in Ipswich.

 

Surely its just to sell as is. If you're not 100% confident on the renovation numbers and end values, then it seems like an unnecessary risk for uncertain reward.

 

Could anyone recommend a building in Brisbane/Ipswich who could give me an idea of prices for a reno like this? Would you get a raised house, back deck, new roof and interior/exterior paint job for under $200k?