So I picked up a Silvertone SRK1 (http://www.silvertoneguitar.com/products/electric_srk1/index.htm) a while back, essentially free, and it's just been sitting around my house. I want to get it into somewhat decent condition and probably sell it.

It needs a lot of work, most notably new hardware. The pickups sound terrible, the pots are essentially worthless, and it could use a new toggle switch. I feel like the pickups are the worst part of the whole guitar and if I spent a few bucks I could get it sounding way nicer.

I'm just wondering how much money I could put into it and expect to get back at resale. I'm not really worried about turning a big profit, I just don't want to put a bunch of money into it and not be able to get rid of it for the price I ask.

I looked up the pricing for it and I could only find it in the starter packs, which were around 200 (400 MSRP). So if I place the guitar at roughly 100 and put around 150 into it, I think I could probably get it to sell for at least 200, maybe 250 or more if I market it well.

So what are your thoughts? Should I just give it a good setup and try to get rid of it while I'm ahead, or would it be fine to put a decent amount of money into it? I've got a bunch of guitars I need to fix up so any experience is always a good thing.
Only play what you hear. If you don’t hear anything, don’t play anything.
-Chick Corea
Well if nobody else is going to bite...

If you want the experience, then go for it. Check out GFS for inexpensive parts.

But be prepared to take a loss on it if you try to sell it. Mods rarely increase the street value of a guitar, but they can add a lot of value to the person making the mods.

Good luck.
What a horrible looking guitar.

Sorry. As said earlier, you probably won't make up much money on it, because it's a fairly cheap and useless guitar as it is, and people don't usually pay more for modified guitars.

However, I completely second guitarfetish. Excellent parts, and good prices.