I see investors selling for $100k-$125k above purchase with full kitchen, baths, flooring, paint, etc rehabs.

Kitchen?

Not adding any additional living space, just dividing the two units, putting a kitchen in one of them, and probably not having to add a bathroom to either unit.  

I gutted it and added new drywall, new light fixtures, new bathrooms, new paint, new kitchen, new furniture and new flooring and new windows.

The property is being modernized with brand new floros, kitchens and bathroom, windows are being added.

I assume you are probably losing a few of those bedrooms for living rooms, kitchens,  hallways, stairways etc. if converted from 2 to 3 units.  

But I just put a ton of money into the second place for a new kitchen and the first place is not in an area I want to live in anymore.

And they had taken the kitchen cabinets apart and burned them in the fireplace for heat.....I salvaged some and painted over the burn marks, didn't look half bad....ya can't make it up, right?

New HVAC, plumbing, electrical, floors, kitchen, baths & added a deck. 

Add to the kitchen!