I've been trying to follow along for a while now, and have heard there were some compromises, but not entirely sure where things stand.

So far I am not sure as its still such a new investment, I am hoping to add a separate laundry and kitchenette to the converted garage so it is a total separate unit and can comfortably rent out both areas of the home in one year without compromising the comfort of future renters!

If you have a tenant that takes care of the place and pays every month even though they are late it would be best to figure out a good compromise.

It's the edge cases tend to be more of a personal judgement call... is it an "A-" or a "B+" or a "C-" or "D+" I think most people develop these judgements over time based on their personal preferences and the compromises they are most comfortable with.

Sure; and all the more reason to not compromise on your criteria.

It's not my favorite program, especially in highly competitive markets and highly competitive properties, but your patience and willingness to compromise paid off big! 

In your situation, a mini-split may be the perfect compromise.

Selling will not be insulting].In future, you can always re-invest in ways that let you to rent out individual rooms (and/or, rent by the day if that floats your boat), without compromising with a hand-me-down, less than 1%/m, uncertain-HOA-rules type property that most likely would reach its best value being sold to an owner-occupier. 

The top of the ceiling is not wide, so most of the space has a compromised ceiling height.   

Seems to be a reasonable compromise on the "cash flow" v "appreciation" balancing act.In other cases we are seeing folks that were able to negotiate with their employer to allow them to work remotely (yes, you can get a mortgage in such a scenario if your employer will confirm in writing that you're OK'd to work remote).