I'd upgrade the kitchen and the bathrooms--assuming the plumbing, electrical, roof, HVAC are in working order.

Something like this:This home has a completely remodeled kitchen and bathroom, new hardwood floors throughout, all updated mechanicals, new roof, etc - which none of these comparable properties have. 

I would also suggest finding local supply stores to find out where you can buy tile, kitchen cabinets, bathroom vanitys and sinks.

Nothing wrong with that, I have a student rental like that. i bought the house already converted, they enter into the kitchen, the dining room became the living room and the living room the bedroom. the house still had a perfect flow through it. that will be value added for you, turning a one bedroom into two.

kitchen before and after

SFH 3/2/2 approx 1300sqft , taxes $2K market value $140k-$150kThere is a repair needed with the plumbing for the disposal in the kitchen area that the laundry also connects to it, a broken pipe.

The Property:2 family property,  864 sqft both units, 1860 yr builtunit 1 is  3 bed 1 bath, and rents for $1275Unit 2 is 2 bed 1 bath and is not rentedCurrently one unit is rented out for $1275 but all utilities includedList Price is $119,000, been on the market for 162 daysI havent been to the property to see it in person but cosmetically the pictures look very good - one unit has some updates (new kitchen and appliances) and the other might need some touch ups but looks well maintained.  

The property seem undervalued even if I bulldoze the house and start over (the seller said there is no kitchen so I may have to do that).  

Going with hard money or a similar setup could get you in the game much quicker and avoid the problem of having too many chefs in the kitchen (Which is a legitimate issue). 

It would be a second or third bedroom with shared use of the hall bathroom (which is HUGE), kitchen, living area too I would imagine.