Old duplex, solid building, first property?

[Dea Chu]

I'm looking for some ideas about a duplex I'm interested in. I don't own any property yet so this would be the first. The property is in northern Ontario, Canada, and is an all brick duplex with an in-law suite. It was built in the mid-50s. Here are some pros and cons in my opinion:

Pros: Desirable area, potential for 3 legal 2 bedroom apartments, new hot water boiler, shingles are ~5 years old, separately metered, lot is sloped toward back of building which allows for basement in-law suite to exit to ground level in backyard, seller to provide fire retrofit, parking for at least 4.

Cons: Hasn't been updated electrically (2-prong plugs and 60 amp service), concrete stairway needs leveling (tilts toward house), in-law suite is not legal unit, older finishings in kitchen and bathrooms (and plaster walls).

The list price is $399,000 but I wouldn't want to pay/offer this much. I'm considering putting 5% down and moving into one unit and renovating over time, but would want to be sure the basement could be made legal, and things like the electrical system wouldn't cause too many problems or could be updated. Can anyone give me an idea of what it takes to make a basement in-law suite legal in Ontario? And does anyone have experience with old houses and old electrical systems?