For instance, depending on your location insurance costs could be much much higher than indicated in the book, construction costs are a lot higher, etc. 

The exact amount of rent on Jan 1 will depend on whether your notice of the increase was handled according to the lease or not, but you may not want to risk providing her with angles to fight you in court just over a few dollars.

As @Carl Millsap said it depends on how much more in rent you're getting compared to the costs of renovating.

As far as how much you pull out it depends on terms.

Is there strong demand for rentals and is it potentially possible to rent a room for 1500-2000 depending on the location (slightly cheaper than a studio from what I've been seeing which is how I priced my rooms in AZ)?

I often do a step ladder depending on how severe it is. 

You also have the options of the 2 + 1 which is a 2F with a boarder unit that an owner can live in, but likely can't rent after you leave so it's only a temporary solution depending on how stringent the municipality is.Your VA gives you lots of options, but you won't cash flow if you use at 0 percent down because rates are too high.

I don't work on houses, but I have to use B and A-basis values for material strength which in effect means the real material will end up being 20%+ stronger (depend on the material).  

It depends on a lot of things, including how cheaply you *would* live without house hacking.

We get Costco toilet paper, either Kirkland or Charmin depending on price/sales.My cleaner is very experienced and made the point that most people who are particular about shampoo, conditioner, etc., will bring their own anyway.