Making SFHs into duplexes- good idea or not?

[Travis Kemper]

Hey all, I am just looking for opinions, experience, etc. on an idea (which I am sure is not an original idea in this group). My wife, brother and I have been looking to start investing in rental homes. We have been looking at multifamily homes in the Phoenix area for the last 5 months, have made maybe 30 offers, but are still just building our cash reserves. Yesterday I had an idea sparked by a recent podcast and a conversation with a BP member. I looked for mislabeled SFHs that may have some type of apartment on premises, but be labeled on the MLS as a single family home. We are going to look at this particular property tonight and will very likely be submitting a bid. It is in a good/ up and coming area close to where Ben Leybovich posted about purchasing a 117 unit complex just a few days ago. In looking at the area and the pictures, this property is a good deal nicer than any of the small multifamily properties in the valley, and it is also cheaper than most of the rundown duplexes in the area. I'm sure I am jumping the gun getting excited here, but this got me thinking:

Does anyone buy bigger multifamily properties that may or may not have a garage and remodel them into a duplex for bigger returns?  What are the pros and cons of such a project?  It just seems like it may be a good way to increase profitability and attract better tenants as the neighborhoods, at least in this area, are much nicer where the SFHs are than where most duplex/tri/quads are.

I appreciate any advice/ experience/ thoughts. 

-Travis