In Chicago you request a CHA Burden sheet and that gross number minus utility allowance will be what you get in addition to making sure bedroom size is adequate.  

As for your scenario, how many bedrooms would be ideal?

rent out all the bedrooms to your friends. 

I kinda get it if 4 and 5 bedroom properties are going for 1.5 million in that market but... thats just math wondering what reality is?

The property is a 3 bedroom, 2 bath (one of the rooms is the master with its bathroom and access to go outside), with a separate garage and an unfinished garage unit.

If you have some capital, income, and decent credit, buy a 4-5 bedroom house and rent bedrooms. 

-If its a large house that has a dedicated laundry room on the first floor, throw in stackable  laundry units on the bedroom floor.

Others would take that 2/2 and rent out each bedroom to undergraduates, or rent to one and allow sublets. 

I'm also thinking of turning a room downstairs into a bedroom with a simple wall.The TH is actually across from UCSD, not SDSU.  

We manage 275 residential properties with the majority of those in Sherman/Denison so I feel uniquely qualified to chime in.Generally speaking, 3 to 4 bedrooms are the most popular and for a new build, they will lease anwhere between $1600 - $2200 depending on the area, size and amenities.