rental house configuration - 3/1 or 2/2 beds/baths

[Joe Kato]

Fixing up an 1800s colonial house with waterfront in coastal new England. Looking to attract summer vacationers for AIRBNB / VRBO rental. Last year setup our first AirBNB in another property in town and had over 150 nights filled in a small 2 person place. This new house could sleep 6-8 people, but predicament is should I leave it 1 bathroom, or make 2 baths? The home is small 1000 S.F. 2 story house, 15 min walk to town, but on the water with dock, and can attract transient boaters looking for overnight, as well as beach goers and city folk looking for a weekend getaway. House is small and thought may be better to add second bath so 2 couples could rent it and each have a bathroom, or family with kids and have separate baths. Alternatively, it is a 3 bed now that could have 2 queen beds and bunk-beds in the third small bedroom, and even a pull out couch in Living room, but that could cramp a 1 bathroom home. Request your thoughts if you were looking for a vacation rental and what would make/break the decision to stay here or if you have experience with nightly house rentals what is most desirable?  thanks