The layout in the property appraiser website shows the total area of the home (the rooms are not divided).

Ie can we rehab it, fix and flip, live in it as a house have, reconfigure the layout, does the property sit in the path of progress? 

Most of my investment properties are single wide trailers as rentals that my building crew and myself have gone through and completely remodeled, from new roof, layout plumbing, electrical, drywall, and appliances.

I bit usual layout as its set back from the street with its own access lane and backs to a large apartment building and has taller wood fencing, but the owner has lived there for 12 years and is 73 now and tired of playing landlord with his neighbors/tenants - he has the usual tenant adventures going on right now, such as an eviction and probably isn't a thorough tenant screener. 

Gabriel Rodriguez I invest out-of-state and it’s pretty much like being an absentee owner, just with...more risk :) You don’t intuitively know the right vs. wrong side of the tracks, you can drive by a property on the weekend, you’ll be taking a property managers work (even with documentation) that expenses are necessary, and you’ll pay for a couple of flights a year just to see the places you own.

The 2nd floor layout was not condusive for such as the layoff is a bit boxy.

Schematic Design (new layout, demolition plan).  

.- the 220k includes upgrading a separate half bath to a full, completely moving a full bathroom (so layout isn't weird), demo'ing a shed, and then finally adding the expansion.

It seems counter-intuitive until you do the math and experience it yourself.This is one of many reasons why I invest in Brooklyn, NYC.

I think you nees to lay out the costs and then decide.Converting to gas depemds on how far you are from service now.