single family with garage apt VS 2 single family

[Luke H.]

Hello all, hope all are well. I am in need of advice, suggestions, and help running numbers.

Current: Lot with a 2 bedroom house built in 1929 (people say the wood is better than current wood). The house is in very much remodel/upgrade due to termite infestation, flooring issues, foundation, old plumbing, and little /no insulation.

Option 1: Total remodel of the home, strip down to frame, repair/treat wood, fix issues, new layout,  maybe go 2 floors, add garage apartment in back yard.

Option 2: Remove home, and build 2 (two story) single family houses.

Considerations:
Will keep the property for renting.
Lot already subdivided.
Want to keep taxes low.
Amount of work and cost between the 2 options.
Most of the neighbor is single family homes.

Someone told me to run the numbers to see what would be better and am hoping someone here could provide a plan/strategy for running numbers. I'm wondering how to determine cost differences.

Feel free to ask questions and any help is appreciated.

Thank you!