Report him to your local licensing boards as well as make police reports, even if not a realtor he will get large fines and potentially criminal charges. 

The property is in a B-class neighborhood, and while I’m comfortable managing coliving setups, I’m curious about any potential nuances around refinancing and insurance for this type of property.Are there specific loan types or lending policies I should know when refinancing a rent-by-the-room property?

My advice is to gather all of that information and present it to the potential buyers up front.

@Akil MitchellFrom my experience, when buying a property, it's crucial to assess local building codes, potential de-conversion costs, and permit requirements.

In my experience, finding deals with strong potential for cash flow, often means digging deeper into off-market opportunities or unique property types that traditional models overlook.

I've been a few times to Killeen, Belton, CC, Temple area looking at potential purchases before I gave up. 

The more you can show that you have community support (talk to your neighbors of the property & the local biz) and potentially MEDC conceptual support that will go a long way. 

The premise of the time value of money struck me: "Money in hand today has earning potential, and we can turn money today into more money tomorrow by investing it."

You seem to be aware of this risk in referencing potential bottlenecks which puts you ahead of the curve. 

You need to pay attention to things like rental demand, upcoming developments, and overall area growth potential.