looks like it'll e a fun project.I say you leave the main floor, which seems to be the kitchen and the living room as is. 

In the process you'll get an FHA appraisal done, if the appraiser notes  a second kitchen you will have to prove multi-family zoning or the reverse won't go through...or you can rip out the second kitchen.  

The home does mold remediation and new hardwood flooring and new carpet..the kitchen def needs updating.

Scratch and dent appliances we purchased from Sears.

Old kitchen and baths.

And what made it worse is that it seeped into the grout in the kitchen tile.

This was a flip that sold in April 2013 for $183K, the investors have completely renovated the house they've installed new A/C, new flooring, stainless steel appliances, granite counter, and updated bathrooms.Anyhow, the house has been on the market since Jan 2015 starting at 320K and now it's at 279K.

Newer appliances.

Looking to have electrical, plumbing, kitchens, bathrooms, possibly windows and roofs as well.  

Currently, there is one kitchen on the first floor.