As @Jason Park mentioned, definitely avoid wonky layouts or adding a tiny bedroom just for the sake of bedroom count, as these can actually make your property significantly harder to rent to prospective residents.Code Requirements. 

Some states do not count owning and leasing real estate as doing business.  

Activities such as self-managing, handling tenant needs, monitoring security, and overseeing property maintenance all count towards these hours, even after all units are rented out.

However city is imposing a good amount ofimpact fees based on the bedroom count - which accounts to close to $40 k , which i cannot afford- Ibought the house for myself to reside and cannot afford to pay this.We verified with city prior to buying and theyconfirmed it is residential zoned , however never mentioned about any impactfees.It is residential zone - MLS shows it as 3 bedroom 2baths - it had a extra unit  in the back and also a inbuilt rolling bed on 1st floor for the main I am stuck here- they are asking to prove it was usedas a residential -ever - any guidance would be appreciated on this.

The nice part about real estate, however, is that since a property's tax value is depreciated over the course of 27.5 years (39 for commercial) that depreciation is considered a "loss" and counts against any positive cash flow you had.

In over 90% of cities for 2024 rents are lower then mortgage payments and that is not even counting cap/ex, etc.

Jorge, I love Florida RE as much as anyone, but I would not count on insurance premiums decreasing, let's just try to get through hurricane season unscathed.

What I thought was...because it's considered part of my house I could have just renovated it from a garage to a small 1 Bed/ 1 Bath and still counted towards my R-1 Zoning. 

The issue is small units in small counts is the most expensive development.  

If you can buy an investment property, minus off all the costs, and then still profit at least 20% on top of you investment expenses/cc and incidentals (which should be counted at 10%+), then it makes logical business sense.