If they are below market rent, that is OK as long as there is room for improvement and tenants won't be an issue.

Me and my investment partner is looking at the area for Padsplit (rent by room) strategy?

What strategies can I implement to maximize rental income from my first property, which I intended to convert into two units ( Unit 1:Main house, Unit 2: Basement sun room) but cannot due to zoning restrictions? 

For instance, a beachfront condo with a spectacular, beach view from the living room and balcony, priced around $600K, only generates a gross income of about $50K.

Yes @Michael Smythe I was planning on but I also have a small room in NYC (where I work) so the days I don’t want to drive I would stay here and go back to PA weekends but I spoke to a lender and said I would not qualify for that since it’s a bit far from my job and they might think I’m doing mortgage fraud it’s just complicated so she recommends just doing a conventional loan with 15-20% down payment and use it as an investment property Which at that point I’m not sure if it’s worth it.

I thought paying 5 grand was too much!   

Not that this is your situation necessarily--I'm not sure if you're going to rent out an entire place or a room--but I thought it was worth sharing.I hope this helps and if you want any more info or feedback, please DM me and we can set up a time to chat!

I know a while back Lemon Grove had a lot of opportunity with renting by the room. 

Making sure to only send money on the most important rooms like kitchen and bathrooms.

Places that have little to no appreciation upside above the rate of inflation or a well executed purchase for a short term, mid term, or rent by the room strategy.