Pros & Cons of use for 4bed, 2 bath home? Ideas?

[Victoria Redlin]

Relative has a 4 bed, 2 bath home.  She no longer needs to use the full house and could use some income. What do you think the best use of the home would be?  She probably has about another 20 years before retirement. 

1) Leave it as a 4 + 2, rent to one tenant, monthly rent about $3800./mo. She'd need to move out and rent a different place for herself. Probably around $2200/mo. She'd have one tenant, wouldn't need to live on the property with tenant. 

2) She could house hack it into two units. Live in one and rent one. They'd each have their own entrance, yard and living space, on the same lot. She could stay in one and rent one. She could rent both and move. She'd have two tenants. Each would rent for around $2200/mo. She'd have to invest some money to create this set-up. 

3) Selling doesn't make a lot of sense, because in this market, she'd end up paying the same for a small place, condo, with less flexibility.