I am thinking of changing the plan to open up the kitchen and give the home more living space as well (an additional 500sqft).

The property is a bit of an antique from 1945 but is not in that bad of shape and has had some recent renovations done in the past (kitchen and main bathroom). 

. - Medium Rehab (Bathroom, Kitchen, Roof)$50/sq. ft. - Heavy Rehab (Full gut)  CONSTRUCTION$100 / sq. ft

The first time rent is late and they get the pay or quit notice sometimes it will be a wake up call.

My concern prior to renting out the house would be that I would need to replace all of the electrical as one repair issue with a tenant could cause a major problem and I could see myself renovating the kitchen and bathrooms to get full ARV, but that could wait a few years as they are in decent shape.Does anyone have any good ideas I could present to my family members that would entice them to do such a deal?

The downstairs unit needed a new bath (done) and I plan on also redoing the kitchen as well as splitting the HVAC (One oil unit currently).

., you know you want to retire in X), then it's worth spending the time and money getting familiar with that area, acquiring some local knowledge, building a team and relationships on the ground, etc.Otherwise, if you intend to make it a purely "passive" investment without spending that time and money learning the market, I'm not a huge fan - that's not the right spot on the risk-reward curve for me personally (obviously, other people have different experiences and opinions.)But for me, I'd want to spend the time really getting familiar with a market and building a team and relationships, before investing there.

For what it’s worth, I’ve found that full-time agents can be more committed to their client’s needs than part-timers.  

Update kitchen, remove light box. possibly taking down a dividing wall.

However I have never seen (or been party to) a disclosure form saying "Broken light cover in master bedroom", "Chip in kitchen counter", "Square cut from carpet in closet".