It is "2" bed and 1 bath, although the second bedroom is a bit of a joke - it's actually a really big closet.

I want to give them ample time to find a new place and accommodate them as best I can. 

They are very informative, and contain ample information. https://www.biggerpockets.com/blogs/

Try and get some quotes to add on a bedroom or bathroom depending on what your needs are with the new kid. 

I live in a town that has many college students and young professionals.Instead of renting a 3-4 bedroom out to a family, I was thinking about renting out each room and potentially receiving higher total rents.1) Is this even a viable strategy?

They are very informative, and contain ample information. https://www.biggerpockets.com/blogs/

You're on the right track with the higher bedroom count since it can give you additional ways to rent the place other than just a single lease if things get tight. 

It has 3 units with 3/3/2 bedrooms.  

At $1200-$1350/month for a 3 bedroom home that's $400-$450/month per room.

I just had an offer accepted on a duplex in the 13203 zip code.Both apartments are 3 bedrooms, needs minimal work, and the 1st floor has been there for 10+ years.