If you have four 2-bed/1-bath units with the same appliances, split it four ways and call it a day.

I would like to split the downstairs unit, currently a 200 sq ft 5 bed 3 bath, into 2 2 bed 2 bath units AND convert the garage to an ADU.

First off, huge props to your dad for building that real estate portfolio over the years 👏🏽 Given the numbers you shared (3.4% fixed mortgage is chef’s kiss), it sounds like a solid property with a lot of upside, especially since you already know the ins and outs and can add value by converting to 3-bed units. 

They always sell for less than 3-bed homes, but rent for close to the same.I run meetups in Northern NJ every month, but I have friends who run some down South.

I am seeing section 8 rental rates on the 2025 FMR, the number is about 5k for a 4 bed.So is it just that I rent out a house that has the proper number of beds, and renters will be wanting to get the house?

Right now, we rent a 3-bed, 2-bath house for $1300/month in a park.

I took a 2 bed 1 bath house and converted it into a 4 bed 2 bath within the existing floor plan (2200).

College towns are usually gold mines for rentals, especially with a mix of 2-bed and 1-bed units.

Comps for appraisal disputes typically need to be more similar (size, condition, bed/bath count), more recent, and /or closer in location than the comps used. 

Anything west of those areas (excluding Speedway $$$) will be D class, no new construction/flips, and I don't travel though.