I would think it would be cost prohibitive unless you were planning on selling a bunch of them. Mold rubber is not cheap ($15-30 lb.) and to do a 1/24 model you are talking about 2-3 lbs to make the mold. Then if you can only get 25% shrinkage at a time, you need to do it 2-3 more times before you arrive at N scale. Well over $100 in material to make one vehichle is a bit much.
Years ago Verne Niner had an "N Scale Norm" thread where he applied 'Magic Spray Shrink'em' to put himself in scenes.... so like some others, I checked the date on the thread.... Is this stuff for real..? I'm fascinated yet skeptical. The very idea of using HO masters and shrinking the output to N scale.... I frequently tell my wife and kids that model railroading is a hotbed of miss-applied high technology - you just never know what people are going to try next. I've been waiting for nanomoters to power N scale people up and down sidewalks for years.
There are also a lot of 1/76th scale die cast cars that people have shrunk to 1/87th. One nice thing about diecasts is that the market is so saturated with them, you can find some pretty cheap. My mind still spins with the possibilities. Anyone willing to lend me their HO scale brass C&O steam turbine for a week or two?
Daniel, You may want to try Dragon-Skin 20 from Smooth-On. This rubber used to be called Smooth-Sil 920.