That said, it's certainly impacting my project in numerous ways and I will have legal expenses. 

Quote from @Tri Tran: If what you are saying is true, you could pressure her to make this right by filing a complaint with the state board.

I am currently in my third month with them and have no complaints thus far.  

Im looking at a property that has two legal units and a third that is not.

This includes everything from tenant screening, rent collection, and maintenance to managing budgets, ensuring legal compliance, and addressing tenant complaints.

I'd imagine having a roommate who also gains equity would turn into a legal nightmare when either of us decide to move. 

Especially from a legal liability perspective.

I agree that the cost can be outrageous, and it may be worth it if they truly live up to their end of the deal with oversight, reviewing your deals, avoiding legal traps, yeah there’s a lot we don’t know starting out.

The good thing about househacking a legal multifamily unit is that lender allows you to use the vacated units of 75% market rent as an income to offset the potential current mortgage.

Nah needs to be 30+ apartments syndicated from a blind pool of investors with no money of your own before you turn 18 years old on a sub-to commercial deal skirting the lines of legality placed in an LLC INSIDE of a reverse S-Corp with dividend disbursements on a quarterly schedule of 10+%.