I'd give access for the breaker boxes.I'd try to:Upgrade the units as you suggested ORHave this be part of a property manager's responsibilities ORSee about converting to gasConsider mini-splits for heating and cooling#3 is probably the best option.

My contractor suggested converting the living area and den into the two bedrooms, blowing out the wall between the kitchen and the current bedroom and making the kitchen/living/dining all open with bath access in the living area where it currently is.

I actually am preparing to do a gut/rehab on this duplex i bought that was converted to a single family and I am looking at to doing an hard money to get this done.

You're not specifying whether or not this is a purchase or refi, but since you are saying "convert", I'm assuming you already have a loan that you are trying to convert to long term financing.2.

BPs community,So I have had four contractors come out and do bids on a basement that I am  planning to convert into a legal third unit.

BPs community,So I have had four contractors come out and do bids on a basement that I am planning to convert into a legal third unit.

Electrical, plumbing, windows and doors, moved a few walls, new kitchen and hardwood, converted the attic to a living space with a master bed and bath, stucco etc. you get the idea.

You have to purchase properties that will cash flow when you convert them into a rental.

It seems almost like a hack/BRRRR since we are acquiring a rented unit with reliable tenant, a 5 bedroom house we will live in, and additional 1200 sq ft we plan on converting to a 2bd apartment and all will have their own garage. 

This effectively allows you to convert a home zoned as single family into a triplex.ADUs can now be built on multifamily properties.