What to do with first income property?
I am not sure this is the right forum but my question is essentially what will be best to attract renters.
Back story: I am closing on an income property (my first). It was a HUD house and I got it for $43K. It is assessed for $107K. It is in a nice working class neighborhood and most houses are valued around or more than $100K.
House is ~2200ft. Two floors. 1 garage. Top floor is 1100ft 3/1. Has a kitchen, dining and living room. Mostly wood floors throughout that need refinishing. Basement is smaller because of a utility room. It is 2/1 and has a kitchenette and a large living area. It needs serious floor help, probably laminate quick step type product.
I feel like I have 3 options with the property and that is essentially what I am asking, looking for advice on.
First: What I think I want to do the most (right now at least) is split it into two units. There is two doors on the top floor accessed by a deck and 1 in the basement/lower walkout. My biggest concerns are I don't know what it will take to get them metered separately, different residences, etc. One advantage would be I could do the top floor first because it will rent out for more (bigger and nicer) and then do the bottom floor later.
Second Option: I don't even know what to call it but I have seen it mentioned on here is renting rooms with utilities paid. I didn't even know this was an option or legal. But there is 4 rooms and 2 baths so I guess I could have 4 tenants.
Third Option: is leave it as a single family dwelling.
Place needs some work, drywall fixes, floors done, appliances etc.
Any answers, comments, advice, etc. is greatly appreciated.