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Either subdividing an existing lot and creating an extra lot and for-sale house out of it, or townhomes, etc.  

That way you don't run the risk of shrinking your buyer pool, because in the end, every little extra add on money-wise is a deterrent to the end buyer. 

@Tommy F. thanks for the detailed explanation and good points. 

She was the only one in the room who said she had done something similar to what I want to do, except she lived in a house and rented the extra rooms out.

Always remember to do the math analysis on prospective properties and try to look at them or at least before you make an offer or at least have a clause in the sales contract that allows you the inspection time (about 15 days) that is detailed and allows you to possibly back out of the deal without a penalty that will hurt you too much.

Here are the details: - 4 bedroom, 2 bath about 1700 sqft, built in 1883- Neighborhood: C I think, close-in 45503 if your familiar with the area- Duplex upper unit and a lower unit, each 2br 1ba - Current rent 300 upper and 400 lower (which is up from 200 and 250 in 2014), neighboring duplex gets 600 for a 3 bedroom but it's nicer- Expenses (prop management, lawn, bills, taxes... ) in 2016 so far $2200 and in 2015 $3200- Profit from 2015 was about $500 (had the upper vacant for most of the year), profit this year should be about $1,600- Appraiser $50,000 Zillow $58,000 Trulia $37,000 Estate $16,000- Bought in the 80's for $15,000Thoughts?

http://www.realtor.com/realestateandhomes-detail/M53759-71728

I might try casually mentioning that detail and see how he reacts. :)

Other details...I checked the foundation walls as much as possible and did not see any cracks what so ever.