Will it look odd to have it staged as a bedroom?

First you must determine if you want to purchase the service station operating business and lease the real estate, purchase the real estate and be a landlord to the station operator, or purchase both the operating business and the real estate.Many of the best locations are either owned by oil companies and leased to operators, or have restrictive contracts with severe penalties for changing gas suppliers.  

@Dino Haramis I am unsure of specific rental laws in San Carlos but if there are no rent control/eviction restrictions, then start by sending a 60 day notice of termination of tenancy.

Mailers, cold calls, door knocking... whatever it takes to improve our odds.

I'll book some time with him to focus on this topic and if it still sounds odd I'll take David's advice on seeking a second opinion. 

It seemed like a very odd note to add in the counter offer, and was wondering if anyone else had experience dealing with this.Thanks in advance.

Restrict your consumption (e.g., TimFerris stoicism-style) and avoid a property purchase for your primary residence, unless you intend to house hack over and over.

Neal is exactly correct, lower end tenants are getting pushed into rockwood which is worsening crime yet home prices are appreciating there, it's very odd and a real example of "forced appreciation".  

Given that most native-born Americans can't even spell "amortization," what are the odds that these immigrant ESL families really understood what they were signing?

That seems odd.