I want to convert this property into a mortgage Note.What are the exact steps to do this?

Nice thing about HML is they are easy to convert into a lender. 

Am I thinking of converting this property for SRO/PadSplit model where refinancing may be harder to do because of property improvements I have made?

After living there for a year, you can convert the home into a full rental property without problems.

During the slower winter months, we convert some STR properties to MTR. 

A small 18 inch square would suffice, then you can just patch that section. 

I learned that I really enjoy originating notes and thought my services could prove profitable to other investors.I would like to start a full-service business where I help landlords convert their rental properties into low-effort and profitable notes.

(i.e. if the tenant moves out, the property could be converted to a long term residential rental or STR with enough margin for you to hang on to the property until selling makes sense)Keep us updated on what you decide!

This one is a duplex with 2x 1-beds that pretty easily convert to 2x 2-beds.

Here is a breakdown: Queen bed frame: $400 - $700 High-quality mattress: $500 - $9,000 Pillows (2-4 per bed): $40 - $120 Linens (sheets, duvet, comforter): $150 - $300 Blanket: $50 - $75 1 Bedside tables: $40 - $150 1 Lamps/lighting: $40 - $75 Art decor (2 pieces): $100 - $275 Bathroom towel racks, dispensers and soap racks: $100 - $200 Makeup mirror: $20 - $80 Hair dryer: $20 - $60 5x7 rug: $75 - $250 Small vase with plant: $20 - $50 3-ft decorative tree: $50 - $150 Two window curtains (with rods): $80 - $150 55-inch TV: $375 - $500Total cost per bedroom will range from $2,320 - $3,545