It's not really a fact of the world but a risk a real risk correct but its a what if, and if I laid in bed after successfully setting up an Airbnb arbitrage and so far have success and just think about what if this or what if that, it'll only slow me down. 

If you can reasonably throw up a new wall and closet, turning a 3 bed into a 4 bed, that is a great place to start, but only if it works for the property and you have at least 2 full bathrooms.  

I also added a pet blanket for the master bed, because dogs' nails were snagging the stitching on quilts. 

Its 2700 sq ft, 5 bed 2 bath (basement is unfinished and you can finish the 3rd bath).

This is a 2500 sq foot 3 bed 2 bath both sides.

Tearing down any rooms that are a little wonky before the appraisal.For example, I bought a HUGE (3300 sqft) 3 bed house.

     * House is a 2699 sq/ft Single Family Residence| 3 beds, 3 bathroom | Built in 1956 | NO HOA     * There is a chance I could pay only interests so I can start saving some cash for the incoming maintenance and annual payment equivalent to the 12 monthly payments (~$5,029.77 per year during the balloon period)The advantages I can identify in this deal for me are:* Lower interest compared with traditional loans* Lower down payment compared with the ones compared for traditional loans* House is technically ready to be rented (waiting for the inspection) * Forecast - 3 yr growth (appreciation) is expected to be 8.1 % (Bigger Pockets)The disadvantages I can identify: * I am still vulnerable to foreclosure if sellers don't make mortgage payments to the bank.* Refinancing issues at the end of the Balloon Payment?

There are always exceptions as I have seen in the past some two beds and even 1 beds be opportunities.

People do dumb stuff every day, but don't expect me to call bed-sheet-sky-diving "safe", because it ain't. 

My initial guess would be look at 1 bed 1 bath rentals in the area but is that the best way to estimate?