It has recession resistant employment as it is great at everything but a master of none. 

Sounds like you handled it appropriately.If you get or expect resistance to moving out you could offer them something to help with moving expenses.

Was there a lot of resistance or red tape from the tax assessor's office or whoever handles refunding the overages, or did a government agent start investigating you as potentially gaming the system?  

If you have any experience with cold offers, or even acquiring deals from people who may be resistant to sell, I look to your guidance/advice with open arms (and ears)!

Otherwise look into better quality LVT (something with an AO or Ceramic Finish for scratch resistance.

My very 1st tenant, as I was resisting becoming accidental landlord, I rented to friends of family a rent to own contract for deed where maintenance was all on them.

@Rigo MonzalvoFunctionFire resistant walls provide sufficient time to discover a fire, control it and evacuate the building if necessary.

I do buy higher quality carpet (think durable and best wear-resistant and not pretty and fluffy) that looks decent and stands up to abuse.

If they resist it's a deal killer but you can soften the demand by telling them the bank requires these for loan underwriting.

@Jon Gorham Student housing can be a great investment just make sure that you use really durable materials (high traffic carpets, stain resistant paint etc) to help the house stand up to the potential beating it will take from the tenants and remove things that break easily or increase your liability (IE ceiling fans).