We're submitting as a single family since it is single meter and understand the current zoning but are curious how this may complicate the process as we go to close. 

You would have ongoing filing requirements with the State and would need to keep business records and documentation.

Deduct it from the deposit and send your former tenant their final statement, then shut off all communication.It's unlikely they will sue if you have documentation, but it's always a risk.

In this case, speed is your friend.If you can, pay for repairs out of pocket (or on a credit card or with a loan) do so and then submit the actual bills to the insurance.

Also, if you have limited or no history of rental income, you'll have to get an appraisal on the departing home to document you have at least 25% equity in the home.

While it may seem like a simple concept, it's actually a very complex process that requires significant documentation as well as specific methodologies.

Let me ask you this: is it fair to require a natural-born US citizen to submit to a credit/criminal background check, but then waive that requirement for someone in the country illegally? 

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

Banks might also consider potential rental income to offset mortgage payments, so documenting your plan to rent out the rooms could help.2.

More than happy to review any documents you have an offer any advice I can if you shoot me a message.