As we were going over our rehab plan we noticed the side entrance to the house has a landing that is lower than the upper level (1st floor) and goes to the basement. 

After painting the outside of the entrance door the smell finally went away.

Assuming the basement has a private entrance, I'd say you've created a duplex.

I found that the areas where i was looking zoned R1 you were allowed to make a basement apartment with separate entrance. 

The property itself is (8) units, all single bedrooms with included laundry and private exterior entrances. 

is there an entrance fee or something?

Both units will have access to the laundry, back yard and have separate entrances (the main floor can be accessed from the front or back door, the basement unit has access through the back door only).2.

if i were to wholesale, these are my different options to get the financingCash deal- big discount on priceOwner Financing- they need finance the equity and i pay off whatever mortgage they have left.  They do this if...

Would it have a separate entrance and utilities?

In August we closed on a SFH with a seperate entrance to the basement.