Rent out right away, or renovate?

[Wesley Canhedo]

I am stuck between 2 options right now, whether to rent out my home with the small interior renovations I’ve made, giving me more cash flow but less equity, or going through with some major renovations giving me a lot more in equity but less cashflow.

Details-

Currently-

Home Value- 490k

Loan Amount- 400k

Potential monthly Rent Cashflow - $1000

After Major Reno-

Home Value- 800k

Loan Amount- 580k

Potential monthly Rent Cashflow- $700

Is 200k+ in equity worth losing $300 in cashflow?