Sorry to be so needy but I'm trying to wrap my head around this property and I'm driving myself insane :)Legally this is a 1 story 640 Sq foot 1 bed 1 bath home in Chester County PA.  

This idea of changing from 2 beds to 3 beds is something that I have never performed before.

Understandably when there is a 4/4 or 2/2 it is probably easier on the student and the owner since there is a bath per bed.

Then I also go to padmapper.com and put in the address as well and filter to the same number of beds/baths and can see properties currently on the market and what condition they are in and price.  

I know my mortgage will be covered by the two bed room unit up stairs.

#beds/Baths/SF)

I really want to salvage this deal because all the contractors and a personal friend who has looked at this house said it needs mimiul repair work and it's a rancher. 3 beds 2 full bath with finished basement.will a hard money lender fund this deal for me yes or no?

I had three contractors say they could do the rehab on it for 8500.00 which was great. the house only needed new carpet in the bedrooms and I was going to put laminate down in the living room and dining room. paint the interior of the house, new kitchen window, new vinyl kitchen floor put down, replace 3 4 foot pipes that they stole which was a blessing because they could have taken a lot more but they didn't. also mud spackle and replace the sheet rock in one of the bed rooms. all three contractors said they could do it for he same price and I found a house that didn't need much work.

Airy neighborhood but have concerns about the demand for 3 bed 1 bath houses.

@Stephanie Garcia As an FYI for the central heat and air I had put in on my rental ran me ~12k the unit was 1147 sq ft 3 bed 2 bath, this included all of the ductwork and install of everything.