Providing relocation assistance to tenants, for example, if I want to sell the property or move back in - this can range from one month's rent to thousands of dollars (e.g tenant has a disability, minor children, elderly it will cost you more), depending on the city.

Vitaliy provided some great points about the pros and cons of single family verse multi-unit investing.

There is almost no circumstance that will save you more money then living at home provided its rent free.

In this manual (which I assume could be modified to provide to tenants) I include all the financing information (which you would not include for tenants) bank accounts, mortgage accounts, payment information, and mortgage payoff), a list of the contractors, what each contractor does, a list of upcoming planned or necessary repairs, and a copy of all leases associated with the property.

I am not acting in an agents role as I am providing the service to help the owners sell their assets, while enabling the buyer to acquire cashflow positive deals that banks are not providing with current rates.

Any recommendations for Umbrella insurance providers for each partner to cover any liability?

You need to provide 60 days notice if they have been a tenant more than a year.  

For legal, we can provide you a list of attorneys out there who do this and my recommendation is to interview them to see which one you feel works best for you.

The investment is a little bit more upfront since you'll have to furnish the room and bathroom fully, but you may be able to command a higher rent each month since you're covering all utilities, WIFI, and providing all the furnishings.Either way, renting out the room is a great idea and I'm sure it will be helpful so you can rest a little bit easier while you save to move to Lakeview, eventually :)

Make sure you and your mortgage provider understand "delayed financing".