Since the attic is no longer a livable area it cuts my 2nd unit square footage nearly in half. 

Can I use a single-family home with similar square footage as a comparable?

Square footage of each unit?

I think the ARV is pretty accurate, nearby 4/2's with slightly higher square footage are $100k and up.

If the neighborhood likes wood, then your square footage may not be so large as to mix and match and you'd want to carry the tone of your cabinets into your flooring.

What is square footage of property? 

I heard on a podcast that small square footage homes should be called based on the lot, not the home. 

In my market, a multi-family will sell for less than a SFR of the same square footage, because multis are bought as investments and SFRs are bought as primary risidences, so I would double check that you are actually adding value by converting.

Once as a short sale with 2 beds/1 bath, square footage of 1000 feet.  

In order to keep the attainable 500k goal i need to keep the sq footage.... what would you guys do?