I am looking for advice on the best way to keep a property in Montclair NJ. What would you do if you were me?

The property is currently being used as a primary residence (looking to move to CA) and was purchased in 2021 for $650k with a 30-year fixed rate mortgage and PITI is just over $4k per month today. The property is worth approx. $900k, which would be almost $350k in equity today with $250k all-in for down payment/closing/rehab. Rehab consisted of complete gut renovation of kitchen/dining area, new hardwood floors and refreshed bathrooms (new vanity and paint).

I am bullish about the long-term appreciation prospects of the property and have trouble envisioning the hold strategy over the next 10-15 years. The property has walking access to local parks with playground as well as nature walks. Under 10 min drive to Montclair State University, Upper Montclair NJ Transit station and close to route 3/garden state parkway intersection in a great kid-friendly neighborhood.

With 4 bed and 1.5 bath the current layout is ideal for a family. I am concerned that the local market will not support long-term rentals as I do not see any listed that are comparable size and bed/bath count. I think of Joe Asamoah with the Section 8 strategy deployed in Washington DC and keeping tenants for many years (even decades), but maximum reimbursement appears to be $3,740 for 4 bedrooms and market rate family tenants will likely turnover every year or two as they would likely be looking to own in the area.

I think rent by the room (students or university professionals) would be the best way to cash flow the property while paying off the mortgage. I was able to comp single bedrooms at $1k per month with shared bath and $1,800 per month with separate bath. This property has 4 bedrooms and only 1.5 bath, which I worry is not ideal for this type of living situation.

The house is a split ranch with one car garage and 2 car driveway. The ground floor has a family room with access to attached garage, 1 bedroom, .5 bath, laundry and access to modest backyard. Basement is partially finished with access form the ground floor only. 1st level is open concept kitchen/dining room with reading nook and oversized windows with great natural light. The second floor has 3 bedrooms and 1 bath.

My plan would be to convert the garage and living area on the ground floor into additional bedrooms to make 6 rentable rooms ($6k per month total revenue) with shared kitchen. The bathroom count is too small for this number of bedrooms so I would plan to convert the ground floor half bath to a 3/4 by adding a shower and adding an additional full bathroom upstairs attached to the main bedroom, which could connect to the pipes. etc. for the existing bathroom.