Now I can ask the contractor if $4/sf fits his idea of flooring and counter tops for a higher end rehab.  

You’re looking for:A conventional, fixed-rate loanAs low an interest rate as possibleA long-term mortgage — 30 years, if possible, to allow for the lowest monthly rent paymentA small down payment, if that’s best for your financial situationNo prepayment penaltiesNo short-term balloon paymentsOutline Your Tenant Selection ProcessBefore you hand anyone the keys to your property, you’ll want to be as sure as you can about how they’ll fit in, especially because you plan to live on-site, too.

I'd love to help you out and run some market analysis for you to determine if your property would be a good fit to use as an STR or not. $100k in equity really doesn't seem like too much, especially for a brand new house like yours.

This is pretty important, especially if your partner is already concerned about how much time is involved in this.If you answered "NO" to #2, then a duplex is a good fit.  

@Gian Paredes, hello again:)  To echo what has been said here, take a step back and look at if/how this deal is going to fit into your long term plan. 

You can make minor adjustments based on the type of appliances (dishwasher, clothes washer and dryer, air conditioning, etc.) and the size of the rental.

Contact a few and see who is a better fit for you. 

Plus we know it will always be a very easy sell because of where it fits in the price point of the market.

Hi @Petya Toncheva, in my opinion the principal at play here is "best and highest use" and since a room need only have walls and a door to be an office space, but needs to possess more to qualify as a bedroom you're generally better off qualifying it as a bedroom and advertising it however best fits your market.Do be mindful of total square footage and overall utility. 

I will not bend over backwards trying to fit a square peg into a round hole.