First Deal - Rehab questions - how much living space?

[Christopher Kolasa]

Hey everyone, working on my first deal, a duplex in Connecticut and it needs some updating! Took only like 5 years to get my first deal after constant learning, searching, learning and searching, *yawn*. Now all of a sudden I got another single family in Deland, Florida, working on with a partner. Anyway this Connecticut duplex is of current concern, time to get to work! 

Remodel Question:

How much rehab do I want to put into this home, C class neighborhood but great location near downtown and to nearby college. The top unit is a 2-1, approx. 1100 SF, commanding $1095 median rent for 2 BR, or $1300 for 3 BR (rentometer figures). I have a larger kitchen that could also be considered with a living space (Kitchen/dining area). The living room could have a door installed, install a closet and call it a bedroom, but this would in fact limit the total living space available. I understand this is a location dependent question and the payoff for another bedroom in this case may be incremental, but how much space does one actually need/desire? 

1. Keep the living room or make it into an additional bedroom?

2. Thinking of opening up the bathroom, should I remove bathtub and install stand in showers? Who uses tubs these days other than pets and small kids. 

3. Thoughts on what to do with these in your face kitchen counters and backsplash? 

Please see attached photos and sketch for a better visual.

Thanks for your help!