I felt badly for him---and the home is still "For Sale By Owner"--with his only advertising being 1 small rider type sign at the entrance of the subdivision and right in front of the house..... 

My house is a 2 story (3/2) upstairs and downstairs 1/.5 + a huge family room and a bunch of closets I will never use.bought in 2009 for 745000 in the SF Bay Area Peninsula4/2.5 everything re-done in 2008zillow/trulia shows $1.4MThere is 1 exit through the garage and 1 private entrance through a side door/side yardI need to install a small kitchen , a shower and move the laundry room into the garage.

I used @John Barrett: That was my best case scenario but finding a property with separate entrance for paying guest (I like my privacy) is almost impossible with my budget (700k)

Don't count out a home with one larger room, that you can add an exterior entrance to (cut in a door where a window is at present) and create a studio with kitchenette. 

The only downfall to the house I see is that you do have to walk through the front bedroom to get to the bathroom, but there is a closet I believe could be converted to an entrance to the bathroom...but it would be directly off the living room.

Here's an excerpt from my lease that clearly states I am allowed to address similar situations:   (i) Yards, patios, balconies, vestibules, hallways, and entrances may not be used to store belongings or to dry clothes.

I think that if you have a choice of making it into a third bedroom and private bathroom with its own entrance.

Utility providers are not in the business of relocating power lines to accommodate a garage entrance.

The upstairs has been converted into a rental with a separate entrance and electric meter.

The agent proceeded to provide only three pictures of the facility (exterior main entrance, kitchen of one unit, and the backyard) and relayed that I can only perform a walk-through upon the submission of a Letter of Intent.Is it common to supply a LOI prior to seeing the units in an MFH?