But anyway, they found some minor things (no smoke detectors in stairway, loose floor board, one of the wooden rods on the porch was broken.

You could modernize it, keeping the external historic charm, but the inside layout is not geared for modern living -  20' wide grand stairway w/ 16' ceilings just isn't practical in this day and age.

The stairway to our room is in my office on the first floor across from our guest room.

In order for the property to be habitable, it must have all of the following: a) Effective waterproofing and weather protection of roof and exterior walls, including unbroken windows and doors.b) Plumbing facilities in good working order, including hot and cold running water, connected to a sewage disposal system.c) Gas facilities in good working order.d) Heating facilities in good working order.e) An electrical system, including lighting, wiring and equipment, in good working order.f) Clean and sanitary buildings, grounds and appurtenances (for example, a garden or a detached garage) which are free from debris, filth, rubbish, garbage, rodents and vermin.g) Adequate trash receptacles in good repair.h) Floors, stairways and railings in good repair.In addition, the rented property must have all of the following:i) A working toilet, wash basin, and bathtub or shower.

I’ve seen some investors install a stairway from the first floor unit to make it larger and increase rents, but a project that big can be very expensive.

Gets you one more step up on the stairway to Heaven.

I don't think this particular drywall skill is prevelant, but your mileage may vary.The image is the ceiling at the stairway looking down.

QUESTION:Would you put the bedrooms and laundry on the main floor, with living space on the 2nd floor and stairway to rooftop deck?

Updating projects include:2 x new kitchens2 new sets of appliances including plumbing for dishwashers (didn't have dishwashers)Building out washer/dryer laundry rooms off the kitchen, so tenants will have separate systemsAll basement windows will be replaced with glass block that can open (for venting)I'm tearing out all the gross drywall and crap in basement and starting freshUpdating bathroomsInstalling Glass Block in the bathroom windowsFixing a few windowsPaint the whole damn thing inside and outRipping off (and capping) the unused crumbling chimneyWater managementGutters installed with drain pipes so I get the water away from the perimeterRipping out the carpet and refinishing the original hardwood - everywhere (if it's salvable)I am rebuilding a stairway making it saferA few other projectsTotal price after all Rehab/Fees is approximately $210,000I don't know what my rentals will be, I am going to begin marketing it @ $1,500.00/unit I believe I will be able to lease there, or at the lowest $1,300.00/unit (as is market values on craigslist and other sources)The neighborhood is considered the good part of the rough area, lower owner-occupant, lot's of section 8 in surrounding areas.  

The upper could be sealed off from the bottom and an exterior stairway added and likely get $400 for the upper after being rehabbed.Thoughts?