Does anyone have any experience and/or some resources that pertain to converting an old school into livable space?  

Or rent the two spaces and wait for appreciation to bail him out. 

And I know of some institutional investors that have entered this space with similar rates.  

I have also placed them in the corner of a larger kitchen or found space for them in a bathroom. 

Even the big banks are bowing out of the mortgage lending space due to the higher costs of doing business.

In the end, we put in an entirely new central A/C and forced air heating system, all new pipes, new sump pump, and a lot of new electrical.In any event, despite being way over budget, I think the rehab came out pretty nicely…The exterior:(Before)(After)This laundry room space later became the breakfast nook and part of the kitchen.

There is space to build additional units and I went to school with the son-in-law of the man selling.

I'm making the link work by typing a space after it (see it turn blue) so it will be easier for folks to use.

Separate small dr space, full kitchen, jacuzzie and full shower bath.  

I see it ALL THE TIME in the rental space.