I thought about converting it to a 3/2 but there really isn't a way to do that in this house without some major rework. 

Adding square footage through finishing basement, attic or egress add most value for the buck, then adding a bathroom or converting a half to full.

However if i get raised ranch house, and add kitchen downstairs, It can be converted to 2 apartments.

I hear the DOB is getting more strict in terms of illegal conversions but I see so many listings for houses that have obviously been illegally converted.

The garage was converted to an extra room, so could make it into a 3rd bedroom (and additional square feet, which probably isn't in the 1086sf showed online).  

Whether that means a basement, loft, storage area, carport which can be converted into an ADU, long driveways, open floorplans, you have to be creative on how you would make a property work for you.  

What steps should I take to convert it to a condo.

How can I better convert those leads into requests to see the home?

Several of my primaries have been converted into rentals.

That means you can either convert your existing home into a rental property, or sell it with a new game plan?