We are periodically contacted regarding converting a commercial boat to recreational, and maybe living aboard.
In the bad U.S. economic times now and ahead for many years, there’s an uptick of interest in these alternatives. There are some us who believe it is a great idea especially for proven vessels to have a 2nd life. And in a world of increasingly expensive resources, it is arguably a great way to recycle. And finally, even more arguably, you may end up with a superior vessel at a fraction of the cost. <Don Casey> wrote the bible on upgrades, etc, he is mostly referring to repair and upgrade of already existing fiberglass boats. Nonetheless, if you are new to this sort of thing - his book, will be one you will go to regularly. And there are many Excellent books on new metal boat construction (lots of carry over to repair work) – see Bibliography at bottom.
Hobbit (a steel vessel), is presented here, as one most successful conversion. A subsequent << survey >> writes the resulting work to be of highest commercial workmanship standards - equal or better than new commercial construction. In a lifetime, I have never seen an equal or higher Survey rating (but I‘m sure there are probably a few out there).

EYS has been fortunate and privileged to be the broker in recent times buying, .., and then selling Hobbit.
The first conversion took Hobbit from commercial tug to a combination tug and live-aboard yacht. The marine publication “Passagemaker” chronicled the conversion HERE .

The second major effort was a further yacht upgrade. The result (see pictures below) show these results. I apologize that my pictures do inadequate justice to the beautiful results.
Some additional comments regarding Hobbit.

Hobbit has great attributes. It is comfortably, single handedly sailed. In heavy seas, it is more comfortable than most. Inside and Out, it looks and feels like a beautiful sea-going vessel.

The now immaculate, well organized, very comfortable engine room and shop is discussed in the above article.
Not highlighted is the degree of cleanliness - literally one can eat off the floor. This WW-II era, DD 2-cycle Main Engine has tell – tale white towels placed under the engine – no leaks or dribbles. And, in freezing weather, it starts within about 5 sec -achieved with a 24/7 running hot water circulating pump.

"HOBBIT" is a HEAVY DUTY Corten-Steel LRC Passagemaker Yacht. Built 1954 and finished rebuilding into a Yacht in 2004. First conversion occurred during early nineties converting from a tug to a combination tug and live-aboard / cruiser <see details and pictures here>.
Then a major updating renovation occurred about 10 years ago taking Hobbit to a most beautiful conversion <<discussed here>> that it is today. The resulting effects are shown in the pictures below.

Click HERE for specifications