There needs to be a switch next to each entrance to the room.Also, receptacles need to follow the 6/12 rule.  

Also, I don't know how your house is setup but if you have a way to offer private entrance, guests tend to prefer these types of properties. 

I think what you probably want to look for is something like a small multifamily (e.g. duplex) or a single family home with a separate studio attached with 2 different entrances.

The back entrance does have a gravel drive though, to allow your own parking.

Pulling up some pieces and then repositioning them so that it doesn't look patched, together with some closet pieces, might do the trick.Otherwise, I would pull up a bunch of the flooring right at the entrance and tile it in order to make it more weather proof, although much of the laminate flooring these days is very hardy and weatherproof already.

Windows, balcony, and main entrance are a mess!

The house is landlocked but the property that is blocking the front entrance side belongs to relatives of the seller.

The house is landlocked but the property that is blocking the front entrance side belongs to relatives of the seller.

There is no true separate entrance, but the entry to the basement is the same breezeway as the back door to the main level.  

I'm just starting out and my goal is to get my first live-in rental (house with a finished basement/ separate entrance that I rent out).