Location, property layout and amenities are the key to determining how well your property will rent out and for what price.

The rent you can charge will depend on what others in the area are charging for rent (numbers) but also intangibles, such as condition, location, layout, amenities, etc. 

However, if he does not accept, I think I can rent for $1600, however I would have to convert into an apartment layout, bathroom, kitchen, etc.

There are variables, like size and layout, but there's no way I would pay $50,000. 

@Sohail Ahmed Jokhio from your questions, it appears you are looking at real estate investing as a "job" or a university curriculum.There's NOTHING stopping you from accessing everything you need online - except the limits of your perceptions.Not aware of anyone here that's going to be your guidance conselor and lay out what you're asking for.

The unit is in an “A” location but we don’t love the layout and it is on a very small lot with a minimal yard and one car garage. 

Also there is no way to know where the original bedrooms were or the layout of the property since there  is no records?

This house was roughly 2500 sqft, but needed a little change in layout.

But depending on actual layout, banks require a good amount of work to turn into anything that isn't a bank.

Hugh, Wow, That's not the response I expected.Yes I know the numbers are low, I am inexperienced at Real Estate and asking questions about things that don't make intuitive sense to me.