It is a small 3 bed / 1 bath home about 3 miles from where I live.

The owner is elderly and is wanting to sell her 3 bed/2 bath ranch style home for 300K (neighborhood comps are between 320-330K). 

The remaining amount will be the actual rent allowance that the landlord will receive.For example 2932 Sussex:Zip code 60428 is range PRent for Range P for a 3-bed voucher is $2040Assume the tenant pays all utilities (here I used natural gas heat, natural gas cooking, electric, electric charge, natural gas charge, water heating, water, sewer, trash, range/microwave, refrigerator), all those for a 3BD equals $308 $2040 - Base Rent Amount for 3BD voucher-$ 308 - Utility Allowance for 3BD voucher (subtracted from base rent)____________________________________________________________$1732 - remaining rent allowance payable to landlordSo just remember, you'll have to subtract a significant amount from your rental income if tenant is responsible for the utilities. 

I'm currently looking at purchasing a failing bed and breakfast.

(say the area is selling 1200 sq ft for $800k ) so when you divide the back of the lot and build a home: you will be around $300k for 1000 sq ft 3 bed 2 bath open concept home, and sell that for about $650k to $700k (you will share profit with the company 80/20)  and net around $150k to $200k So your $800k home will effectively be ($800k minus $200k : or $600k) and you can use the profit to improve the main front home: add ADU and make it bigger if need be and if the market supports a higher value.

Swapped out almost all furniture and all decor, only kept the sofa/loveseat and one bed.

When built correctly, that can be an extra 4 bed, 2 bath unit (I've seen it in San Diego before).

A single family shore house in keansburg nj (2 bed 1 bath) I can get it for 150k or less from a friend of mine.

2-4 dumpsters for 3 bed house W /1 garage clean out Dumpster- $350x 4 = $1400 Labor $350 daily( 3 people) x 2 days= $1050 TOTAL $24503 days labor=$2800 We can fill 1 dumpster in one day so we might be able to cut 1 day of labor down-)

What are your thoughts about 1bed/1bath condo versus 2bed/2bath?My client is debated between buying a 2+2 and renting one of the room or buying a 1+1.My take is that the price difference is too thin to justify the dif...