So we put in new heating and cooling plus duct work, brand new kitchen all new laminate flooring plus a third bathroom.

Heat gun can damage the wood.

Splitting utilities heat electric water etc .. make this conversion expensive

If so, you’ll probably be paying more as the heat from the roof is coming down.

I could potentially understand longer than a few days...and even that would depend on how bad the heat was. 

In order to count a room as a bedroom on an FHA appraisal, I believe it has to have heat and have its own entrance, meaning if you have one bedroom that's connected to a hallway, and on the other side of that bedroom was an attic that you made into a bedroom, you would have to walk through one bedroom to get to the other and I don't believe this is allowed. 

Could probably get $2,250 with some cleaning and fresh paint, while continuing to pay all utilities.I am considering, however, installing baseboard electric heat and sub-metering the system so tenants will pay for their usage instead.

Deals exist everywhere, they just get harder to find and harder to be the first one to find it when there is more competition and the market heats up.

However, with numerous structure issues, electrical and heating issues, it may be a dead deal. 

Things like roofs or structural or things that make it livable....like missing toilets, missing heat, broken windows....sometimes flooring.