Converting 3BD into 2x1BD - is it a good idea?

[Aleksey Vinogradov]

Hi everyone!

Found a 6-unit rental house in a nice area in NJ, fully rented, 5x3BD, one 1BD

the rent roll looks approximately 1300, 3x1150, 1100, 850

The prices for 3BD in 20min from Manhattan look ridiculous, so I assume those 3BD a really small (I haven't seen them yet, but i believe it's pretty obvious)

So my question: is it a great deal to convert 3BD into 2x1BD in terms of town permission and related paperwork? Taxes? Do real estate people do such conversions on regular basis?

Thanks in advance!