This will either involve tearing out your ceiling to run ductwork between joists, or creating many, many soffits and covering them with drywall.

I tear out fireplaces now for the most part but last time I did one that was wood we ran a propane line to it and got a cheap log set for $300.

if not tear it out and open that up to a full counter top spacemove that sink to the corner and add a couple uppers on the wall next to the area were the fridge use to setyou could use a couple tall pantry cabs on the ends then you should have a nice kit layout with plenty of cab spaceenjoy

It sounds like, since the most recent appraisal, the property has experienced normal wear and tear and needs more than what would be considered 'cosmetic repairs.' 

So, the answer is NO.However, if there is an existing property that you can tear down and build a 1-4 unit residential property, then the answer is YES. 

There is another home that appears to be a stick built home but it is also on a moving trailer and would be a total tear down.

I actually have a single family boarded up right now that we are planning to tear down and build a duplex and have put it on hold.  

Give instructions on what should be done by the tenants to retain their security deposit and/or avoid damage assessments; these include: removal of all personal items/trash, appliances/bathrooms emptied and cleaned - basically the unit is to be returned in the same condition as when they rented it (less normal wear and tear). 

Most of my tenants just hang beach towels over the windows after they tear the blinds off the wall .

I think it is true that the tenants have more wear and tear.