NSW 45 Edmund St Sanctuary Point - dual occ?

What do you guys think of this one as a dual occupancy potential?
It has 3 bedrooms, bathroom, kitchen, living, deck upstairs.
Downstairs has 2 bedrooms bathroom, living, could create a kitchenette? Or convert the garage?
The agent said they've had an offer in the range, so basically told me not to bother lowballing.
Would $445k be reasonable?

https://www.realestate.com.au/property-house-nsw-sanctuary+point-133574410

 

How much work is required to separate the two areas? This includes fire separation, power/water/hot water, noise transmission (from floors & services), access - where are the stairs?

 

Power, hot water. Not sure of noise insulation regs.
Central stairs could be closed off, and easy enough to add external stairs to the deck at the side.

 

Separation of power and water would be expensive, not to mention how you'd make the property fire compliant between the two levels.

The agent says in the listing:

Offering first-class family functionality, with five (5) great size bedrooms, 2x separate living zones, central bathroom and full-sized laundry.
Open plan living, kitchen and dining area forms the hub of the home.

I'd almost bet that the 'two' bathrooms are one bathroom and one extra toilet downstairs. The agent is promoting dual living to bump up the price.

The whole exercise would be very expensive.

 

There is a full bathroom upstairs, with separate bath and shower, separate toilet.
There is a laundry/bathroom downstairs with shower and toilet. Would be easy enough to relocate the laundry tub.
I've seen a similar house on Frederick St that was a 2 story that had been separated, and rented out as holiday rentals.