Create a 3 bedroom/1 bath or 4 bedroom/2 bath apartment?

[Tammy Folstad]

I recently bought a large building in a small town of 500 people in southeast Wisconsin. It currently has a large 3 bedroom/2 bath upstairs and I am renovating the main floor to put an apartment in. The town says I can only do one apartment. It’s 2000 square feet. There is a college town only 10 minutes away. I only have 1 off street parking spot for the apartment.

So do I make a 3 bedroom/1 bath? Or 4 bedroom/1 bath? Or 3 bedroom/2 bath? 

Thank you for your help.

Tammy