The property sounds like a Cape Cod style adding a bedroom upstairs and installing a heat source will definitely up the value and rental rate but is it worth the cost, a good manager will be able to advise you of that too as they are licensed in real estate and can give you an opinion of value.

Another issue with the LLC is that, it's not very fluid, in that you may run into hurdles down the road when you try to refinance - but it does give you protection.On the apartment building side, I am currently closing on an 11 unit and in that case I would highly recommend the LLC / S corp structure for protection, liability and anonymity - it's just a higher risk investment. 

Natural gas installed for heating and hot water.

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.