I would go a little larger on the square footage.

Also, your defererd liability would be pro-rated by time as well.Also, generally just the square footage of the rooms (no common areas) count as being put into service. 

Does Air DNA provide data that corresponds to square footage?

Added a new roof and finished the large basement increasing the livable square footage of the property What was the outcome?

My issue is whether this would add as much value as the work I could put in compared to option 2.Option 2 - Not house hacking - The house itself has attic space that I could convert to an additional bedroom adding square footage (right now the house has a 2 bed 2 bath).

We based fees on square footage and/or BR's and BA's, depending on the individual Owner/property requirements.

I believe they used some formula that used square footage and number of people per apartment, but unfortunately I don't remember the exact details.

I think it needs duct work as well to be considered livable square footage.

Here's what I try to cover in video and picture footage; 1.)

For instance, make sure you're setting the sq footage (I typically flex 200 sq feet on either side) and the correct unit type (apt/condo instead of house, which can only be done via laptop).For other tools, I would suggest looking at the available rentals in that area and how they measure up to your prospective property.