Hard to say, not knowing the market. But I’d upgrade the basics in the kitchen at least to attract a more discerning tenant likely to pay rent on time or make a longer commitment. Otherwise you risk having to look for new tenants every year as the current ones get fed up with the outdated (and likely inefficient) appliances.
@ artlovers-
If you plan on renting it out, may I make a suggestion? Call rental agencies, explain that you have bought a property that you are planning on renting out, and ask their advice (and intimate that you might be in the market for an agent). It comes down to the area you are in, the Bay Area is expensive, but if you are in an area that is for example not as desirable, where rents are lower, it may not pay, but if it is in an area where rents are higher than typical, it probably would, given that the renters will be more upscale and care. If it is an area where college students or first time renters are the majority, will be different than an area with more permanent residents.
My take would be to get rid of the paneling or paint it, it will be a turn off, especially if you are looking to get top dollar rents. Cabinets if they are dark can be painted, or you also potentially is the wood is good get their doors updated, lot cheaper than new cabinets. Likewise the wallpaper should go, and in the kitchen, the countertops are important in appeal, as would a dishwasher if at all possible. You don’t need to do a gut job on it, most of what I am talking about is relatively easy to do, and if you or others in your family are handy, are pretty easy. If you do decide to take down the paneling, there is a risk factor there, the walls behind may be in rough shape, especially if they glued the panels up, plus they may have paneled it originally to cover for bad walls, was very common.
Love that show. And I categorically deny that I watch it because the host MIGHT be incredibly handsome and seemingly very nice. It certainly would have nothing to do with adorable dimples or anything of the kind.
Unless you plan to replace drywall, paint the paneling. You do not know what you will find behind it if you take it down.
CountingDown, reading the thread title made the Berlin Wall reference pop into my head immediately. But you beat me to it! 
I love that floating cabinet between the kitchen and dining room. It appears to be the most aesthetic thing abou the kitchen. I would keep it and highlight the midcentury aspects of the home design. *also a fan of the little glass panel framing the passageway right of the fireplace.
Try painting the paneling, if you don’t like it, you can always tear it out and drywall after. To quote an old friend, “when in doubt, taupe it out.” Her taupe painted paneled basement looked awesome!
I certainly can paint the panels. However, the panels are not flexible as wall boards, for wall boards, you can open a hole and patch it. The panels are not patch-able. I will take a look at the rental situation, perhaps I can rent it with a lower price and when I sell, I will do that major renovation.
How much do you renovate depends on the location of the house, though I see it’s an old house, (80 years?) with wall heater. Are those water stains that are on the ceiling of the kitchen? The floors need to be replaced and I agree engineered wood is better than laminate.
I patched our paneling. Put of a layer of Kilz before you paint – it helps the latex paint from peeling.
@mom60
You are absolutely right, the most cash return will be apartment buildings, large scale will have bigger returns. Two, four or 6 units have less returns and SFR has the least returns. I am a commercial agent, so that is what I do.
In my personal investments, I am on one hand speculating and on the other hand, fiddle with remodeling to gain the best results. Flipping is not an option in the hot pockets in the Bay Area, you have to either:
- Buy and hold, in the mean time rent out for minimum return
- Buy and rebuild, like dstark’s friend. You buy an one level house, scrape it and build a two story new home.
In the better areas around here, even multifamily is high priced, the “CAP rate” is around 4-5%, if the cap ex is not accounted for. I gave up that idea right now. What I am doing is #1 above, I buy SFR and do the minimum renovation, rent it out for about 3%-4% cap and sell it in two years or after the tenants moved out.
The SFRs have a higher appreciation rate than multifamily if you choose the location carefully. I bid $220K on a SFR offered for $200K last year, but the owner withdraw the sale and it is sold for $360K exactly one year later. This house is in a not so good neighborhood(school ranking 1500ish or about 20% below average in CA), butted against the rail track. Every home on that street has a steel security door, thus a lot of crime there. House is around 1000 sf with flat roof.
Further more, my strategy above has its advantages:
To the IRS point of view, I will be “investor” not “flipper”, my gain will be capital instead of ordinary and will be qualified for 1031 exchange.