Even if you are doing a total gut job there are items that will wear out.  

Ok guys I was talking with a local appraiser about building duplex’s.  He suggested that I build them with a layout so some day they could be converted into SFR if I needed to sell.    Has anyone approached building d...

There are two main items you have to do. 

I would probably have 8% for repairs & maintenance like broken windows, snow removal/landscaping, and other small repair items.

@Dylan MeekerDylan, you posted the same item over in the Landlord forum.

We set aside a portion of our gross rents each month (usually 15-20%) in a capital improvement account and then we can use that account to fund repairs like roofs, AC units, remodel of kitchens or bathrooms, new appliances etc.You will always find something to spend on , I would spend some time to prioritize your capital spending, and to plan ahead of time for big ticket items to keep your place in top condition.  

How are you guys handling this issues since these items can vary wildly?

That conversion will add at least $50,000 to the resale value, plus it will sell very quickly as MFRs are in very high demand (average for similar homes 32 DOM).  

I am looking to get credible information regarding property type conversion in Indiana.If a property is zoned Commercial and is currently being used as a residential duplex, can it be turned to residential zoning? 

My repairs and capex somewhat overshoot actual amounts though when I analyze by breaking down cost per items in my more detailed sheets.