Would you take a little extra risk for having a FNMA type 30 year residential style loan? 

I would then have to apply for commercial loan.Is this deal worth the extra effort?

Since you're a newer investor, I'd expect your rates to be around 12% and 3pts with 10% down payment.Your comps should dictate what you do to your house (in regards to that extra bathroom), not your own personal opinions or anyone else's.See if you can bring a contractor (to get bids) and inspector (to find out what's wrong with the house and determine your scope of work) to the house.What program are you with? 

Permits on homes are not transferable so you'd have to go through a lengthy process in hopes of getting a TVR permit, but no guarantees. 

It's free, immediately available and you are talking to the people who will actually issue your permit and sometimes inspect the work, so you are getting your information straight from the horses mouth.

If you could post about pros and cons, life style, ability to work extra, commission, hours...

On the second , your contractor doesnt pull permits and you get busted by the inspector , a 4 month delay and fines .  

Charge extra for pets, not people, and especially not kids.Consider starting a policy of evaluating and raising rent annually. 

While I like the idea of rewarding someone in a career that gives back to the community, and realize this is a extra "perk" (not a detraction), at the same time, it's also a "perk" that some members of the community would literally never be able to have access to because of a disability.I am one of those people. 

In this case, the tenant thought paying "a little extra rent" would cover the costs.