Converting multifamily into studio apartments
Hello all,
I'm looking for feedback on an idea I had about converting a multifamily property to studio apartments. The property consists of a finished basement, first floor, and second floor. The first and second floor has 2 beds, 1 bath. The property is located in Providence, RI. It's walking distance from a university, literally at the end of the street and driving distance, about 7 minutes into downtown.
My idea is to convert this home into multiple studio apartments, ideally for college students or young professionals. Likely would maximize current shared space such as living room and kitchen into an additional unit(s). So far from what I've seen, rents in Providence closer to the city are all $1000+. I came across the idea as I was researching the market and noticed a property that was a home converted into multiple 1 bedroom/studio apartments. The property that I came across was a makeshift loft studio apartment with rent over $1k, although it is in a great location.
I would be looking to do this legally and am currently looking for feedback and investigating the possibility of the conversion. My thought is that plumbing would be the most expensive as each unit would need its own bathroom. However, with the current setup, one bedroom on each floor is already located next to a bathroom. Utility submetering would likely be too expensive if even possible so I'd likely charge a flat rate for utilities.
Does anyone have experience in this sort of conversion? What are some pros and cons? Next steps to see if the possibility is feasible? Thanks.