Keep for future IP or sell?


This has been playing in my mind for a few years and need some further insight and thoughts!

Currently our PPOR is a 2 bedroom home in a lower social economic area (ie department of housing tenants on both sides). It is an old fibro home that I bought in December 2009 for $155,000. It had a newer kitchen, floating floorboards, re-painted (badly done and will need to be re-done) and a garage with carport attached.

Since moving in we have installed a gas fire place heater, cladded the external walls, new gutters, garden beds. Due to hail damage we also got a new colorbond roof, new evaporative air conditioner.

Since living here during a pest inspection done a few years ago identified old termite damage which would have been present at purchase fixed, window trims replaced on one window due to mould, house re-levelled twice (first 'builders' were a joke).

We would still like to complete the following, new bathroom as tiles falling off/cracked etc plus bathroom floor dropped hence re-levelling, so the wall and floor tiles still don't 100% touch. Replace the flooring including carpets as the floating floor as swelled and is squeaks. Install built in as we have none and as mentioned paint the whole bloody house!

From a cosmetic perspective as the house as been raised, you can now see the that the house isn't touching the brick. How can I make this look better? Think this May scare some people!.

Question really is after what we have spent roughly $15k is it worth continuing with the bathroom and flooring to either a) keep as rental property or b) sell?
I haven't spoken to any agents at this stage but expect the rental return to be roughly $250 - $260 and would sell as is for approximately $180,000 $190,000 based on same style home that sold recently not to far away.

So if you were in our position sell or rent? If selling do we bother with renovation of flooring and bathroom upgrade?

Thanks and looking forward to the responses
At about 7% gross yield, I would keep as an IP, provided it fits with your overall strategy and you don't have something else you want to do with the money.

It's hard to know if spending more money on renos will be worthwhile but in the sort of area you describe, I would suggest not. I would have a look at other rental properties to see how yours compares and speak to a local agent to get their opinion of what good tenants will expect.