I just wanted to explore any options besides the obvious like letting her lease out rooms. 

The guest house is set up with a kitchen, bathroom, and then a large living room area that would double as a bedroom.

The only way is to rent out room by room.

You can live in one UNIT or ROOM and renting out the other vacant units/rooms to offset your monthly mortgage payment.There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible.

The way the condo is set up, I would need to allocate the one window in the living room to the new bedroom, meaning the living room will no longer have a window.I know bedrooms require certain legal restrictions to be met (2 egress, certain size, etc).

This home is 3/2 with hardy exterior, barrel brick ceiling entryway, spacious floorplan, vaulted living room, vaulted main bedroom, walk-in tile shower, and granite throughout What made you interested in investing in this type of deal?

I buy turnkey properties that only need a couple grand worth of backlogged maintenance.

You need to make sure there is room on the electrical panel to add larger appliances and also plumbing is easily accessible (to keep costs down). 

The better ones seem to have a dorm room structure of cleaning and caring for the units with chore assignments.

After STR wasn’t stable enough, we pivoted to Rent by the Room.