Severing one home into two

[Jeff C.]

Hey all,

Looking for some feedback on this idea. I sent out a mailing campaign to expired listings to a few cities in Ontario, Canada, and I received a response back from a motivated seller. This property has 2 addresses (i.e. 44-46 Main Street) and looks like it may have been a duplex at one time. It has 7 bedrooms and 3 baths. In a great area. It is currently rented by university students.  They pay $375 per room per month. 

The owner wants $430k for the home, and she told me that it only brings in $2650 month in rent. So it doesn't look like it makes sense to buy and continue to rent out. 

Here's what I'm thinking though: it appears that the home used to be set up as 2 separate homes, hence the double address. I want to convert it back to 2 separate residences and sell of both individually. 2 bed 2 bath houses are selling for $450-500k on the same street, so it seems like I could do pretty well if I was able to reno the home properly.  

Does this sound plausible? 

Looking forward to some feedback  

Jeff