You wouldn't walk up to a perfect stranger and say be my best friend. 

I doubt that they will charge you for the permits for work that has already been done by someone else (but I have seen stranger things.)

It's a huge group, but if you're not intimidated by approaching and striking up conversations with strangers, then you'll find it useful.  

Until you can get someone you know to trust you don't attempt it with strangers. 

Prostitution activity is always super obvious, and it is stated on a sheet they have to sign at the front desk that they are going to be instantly evicted the moment random strangers start entering their rooms, or if they cause good suspicious that they are partaking in illegal activities.Drugs and prostitution always go hand in hand together, so when you kick out a prostitute, you're kicking out the drugs.

Not good when that person is a stranger and it just never works out if you want to finance, sell, rent, etc.People will tell you that faxed signatures are just as valid.

I called the town on a house I'm interested in and was told that it would be illegal to rent out a level to strangers.

@Pat Jackson Don’t insult strangers.

Also my husband doesn't like the idea of sharing a living space with strangers.

Chris, while you're right that with another tenant you won't really know for sure what you're getting until they're in, I would argue that the same is true in option 2, with your MIL staying and renting alongside 2 new strangers.