I realize I would not be able to do this based on the law if I was renting an entire home out, but are the rules different if I will just be renting a room and sharing the common area with them (kitchen, living room, bathroom). 

Live in 4, rent out a 2 bdrm with kitchen & separate entrance.2 - Rent out our current 4 bdrm home.We're looking anywhere in Salt Lake County, Utah. 

For us: last summer we bought a foreclosure and in the kitchen was a large bearskin rug...

This need not be expensive, sometimes just doing a slightly better paint job, or a feature wall, or painting kitchen cabinets will suffice. 

For example we put in Quartz countertops in kitchen and all baths but could have done granite.  

Is there anything else that I should be considering like stair tread lighting or hallway night lighting or LED ceiling fixtures in the kitchen or bathroom? 

I'm okay at estimating bathrooms kitchens, and roof but I've never done anything with wood frame floors needing to be replaced.  

When we walked into it it was in bad shape it needed new flooring, painting, new appliances in the kitchen, etc..but I could see in my imagination what it could be.

With the exception of her amazing rockscaping, I would say that we're both at similar skill levels in departments such as renovating and repairing kitchens, bathrooms, cabinets, doors, floors, windows, wood stoves, etc.Steve: I agree with you 100%.

People come to me all the time with questions about remodeling their kitchen and or bathroom.