@Brittany Washington I have heavilyconsidered using a property manager after reading Ken Mcelroy's "abc's of property management" but i decided it is probably best to self manage my first few properties so I can get an understanding of it as well as learn how to manage future property managers as I plan on hiring a manager in the future. 

My current solution is to evaluate the base price of the room and then I add the estimated monthly deprecation amount of the bathroom and the kitchen area and a new door for argument sake to have something to evaluate the private entrance, although it could be argued to be valued at more than that.

There are gurus who aren't interested in selling you anything who will argue that and have no problem (or fear) of facing the state. 

It will say something to the effect of "ABC COMPANY CUSTODIAN FBO PERSON NAME/ACCT IRA”.

He was fine with applying but argued with me when I said the girls would have to apply and be screened.

It's no different than me hiring ABC Plumbing to swap a water heater, minus the affiliated business relationship.That said, the services rendered by entity A for new entity B should be accounted for in the form of inclusive services... services need to be costed, warranted, insured, and held to the same standards you'd expect from a non-affiliated contractor. 

If yes, then just budget for the cost.To the folks arguing about obeying the law: I get it. 

If the potential renter backed out and during the 10 days or so that the house was off market, your friend can argue that she also missed out on other tenants because she put the property off market, then yes she could keep the money.

I’ve tried to be a nice landlord and even when she has shown disrespect and argued with me I’ve been respectful.

Though you may argue appreciation is a gamble, it is not a gamble if you investigate the area well enough and hold for long enough.