With that being the case, could this potentially make 2 bedroom homes more desirable than the more commonly sought after 3 bedroom SFR? 

By my math, a 10 unit apartment can have 2 3-bedroom units,  4 2-bedroom units, and 4 1-bedroom unitsI assumed that the 3 bedroom units would yield $600, 2 bedroom units $500, and 1 bedroom units $400.

(its currently about 4K with an unfinished basement) and have an indoor pool, sauna, gym, and theatre (and we are planning on adding a 5th bedroom possibly).

I want to take that equity out and invest in existing rental condo market.Questions are:1.

I just won a foreclosed condo at an auction and are now in the process of transfering the title.

I flipped a condo, which I have done many of times successfully.

The in law suite is fully functional as a stand alone unit (kitchen, bedroom, living room, bathroom) and is separated from the unit 1 by an interior door that locks and has its own exterior entry.

I live in NY and I found a two family property asking price $529K each floor has two bedroom and one bathroom and a finished basement. each floor can be rent for $1700 and basement $1200. 

The 2nd realtor I hooked up with was looking at structure, layout and was talking reno costs, ways of changing the layout to add a bedroom to add value and income.  

@Joshua FeitMy shagbark cabin is a 2 bedroom 2.5 bath suites with a sleeper sofa.