Two flats in Chicago converted into single family homes.

[Mike Nelson]

In some hot Chicago neighborhoods, investors are converting two-flats (1500 sf ea unit) into single family homes, rather than converting a single family home.  A two-flat with the same square footage may be available at a much lower price.  The two flat may be purchased for$550,000 for $1.3 million after extensive renovation, including functional layout, finishes, etc.  These two-flats may be more viable as a nice single family home rather than renting 2 units at $2000 each.  Has anyone seen a similar situation in other cities?