My rental strategy is to rent by the room.

I am trying to house hack (3.5% down, owner-occupied, rent other rooms) in the Bay Area (driving distance about an hour from Redwood City and SF).

Doing this like a brrrr I see as the best bet, for example my property does still have room for improvement adding a bedroom and bath to the primary structure and then the ADU.

It could run you about 30 grand or more depending. 

When you have a few good cash flowing properties under your belt then you can push it a bit more but be patient with your first few and look for the deals that work best for you.Rochester is a good area to be starting since there are a lot of properties that are relatively inexpensive that have room for improvement so there will be plenty of opportunities for you, but I'd highly recommend you go to your local REIA (Real Estate Investors Association) and speak with them before jumping into anything.

For instance if I was buying a single family house 2bed 2bath, could I say she was going to be renting one room and will be paying X amount.

We also have a screening requirement to do a video interview with any applicant having a FICO score under 620 - the whole point is to have them show us their kitchen, bathroom and one other room.

@SharonYour comment reminded me of the family who sold me the deceased home because of his "Porn" room.

When I was in my 20s and 30s, it was easy to get a hotel room or rental home, spot on the beach, table at a restaurant, and traffic was a nonevent. 

I am interested in room sharing