Conversions (2/3/4 plex) to multiple single studios?

[Seth S.]

Hey BP - 

I am coming across a few properties here and there that have a duplex/triplex/fourplex conversions into multiple "efficiency" apartments (studios). Even though the numbers do look good on paper, I was wondering if anyone has has experience with those. 

Some of my concerns: 

- Most of those, the owner pays utilities 
- Smaller units might be harder to rent for decent amount of money (unless well located?)
- Legality of having that many units under 1 roof (aka, did the conversion happen legally or did the owner just do it without any permits/permission)
- If the zoning was for a duplex, and now there is 5 apartments, does that make it a commercial property?

Thanks in advance, 

S.