If they haven't passed any rules yet, it is hard to know if this would work for the buyer.

I can see some families wanting to use the open loft space as additional entertainment room, or using it as study/office space. 1 shared bathroom upstairs would be shared by 4 bedrooms (instead of 3 currently) - is that somehow less desirable and/or not add a lot of equity? 

Pass-through costs: In some rent control systems, certain maintenance or capital improvements can justify rent increases (subject to approval). 5.

This could influence whether equity partners or certain types of financing will work better for you.Once I get these details, I’ll be in a better position to pass the info along and connect you with the right person.

If the numbers don't match what you think you would like to make on a property, then either you need to discount the asking price to get there or pass on the property.My second thought is what you're feeling and others have highlighted - no everyone is in the business to make it fair for both sides.

Should I take this on or pass because she’s asking too much?

I am in University and have my Real Estate License and am planning to work part-time as an Agent once I pass my exam to make connections and to keep learning about my San Jose/Santa Clara Market (plus hopefully increase my income).I am saving all I make at my current job and am trying to understand at what point I can start looking to buy my first Property. 

If I don't find people talking freely and glowingly, it's a pass.

This property could be a solid section 8 rental and has passed for section 8 inspection recently. 

Have you passed all required local rental inspections?