We're not sure if we want to keep this one, possibly two, bedroom suite or lose the second kitchen and add walkin closets to the lower bedrooms.Any insight on the value of inlaw suites  

It does not have a closet but we would add one, to officially make it a fourth bedroom.The converted garage was done without a permit, therefore the property appraiser website is not registering the garage as square footage of the house.Will an FHA appraiser count the garage as a 4th bedroom even if the square footage is not part of the living square feet on the property appraiser website?

One end of each bedroom was stripped to the studs for the installation of 3x8 closets that didn't previously exist.

The water heater is upstairs in a closet (all of the upstairs is carpeted).

On the front side of the building though there is an "office" that has two 1/2 baths but no kitchen or closet in the "bed".

Downstairs: gutting and opening up the kitchen, adding a dishwasher, gutting and enlarging the main bathroom and gutting the 1/2 bath, enlarging the master bedroom closet, adding laminate floors and new paint.

I see your from Walnut Creek, so maybe find a way to build a wine rack into a small closet, or maybe install a half wine refrigerator in the kitchen to give your property something special.

The house was also a 2 bed 1 bath, one of the beds had no closet, no furnace, kitchen gone, bathroom gone, 650 total sf, tiny living room, asbestos siding, shed and garage are dilapidated, vacant lot/easement next door with electrical wires and poles going through it.

I was selling some new homes so I'd just move in a desk and a phone and my portable computer so I'd hold open house 7 days a week, 10+ hours a day...  

Washer/dryer hook ups located in private closet area, so I would need to buy a washer/dryer.