(And I know this only because I've talked to the smart @Drew Fein, a Denver real estate attorney who has drafted a rent-by-the-room lease.)You need to lay out how common areas and common expenses are handled.

@Steve Babiak That would've been a costly change to the existing layout and unfortunately wasn't in the budget.  

If you want to go the bank route then it can't hurt to talk to a couple mortgage brokers and lay out your thoughts.

You can't lay out a number like 50% and expect it to apply in every situation.  

If month to month, can we lay out the increases in a letter one time, or do we need to notify them each month?

They layout consist of kitchen dinning room living room big bathroom with only a shower and one bedroom with walking closet. oh and a half of basement rest is a crawl space, which is all cemented and clean.The way the layout is you could not make the dining room a second bedroom, would have to add a hallway, I think it would chop up the house.

The current layout is choppy and would require approximately $30,000 to rehab to a nice flip for residential.  

We can specially request what outfield fields we want included and specify the layout/format we want it back in.

I have personally found that if a property has traded hands a number of times and if it has no problems (layout is fine, rentable area, major systems are fine), sometimes I find that there are zoning or restrictions as a result of the city. 

It was fire damaged so we had to rebuild about 1/2 of the house, and we also reworked the layouts on both floors.