.: Cost of risk scenario. 

This is a great case of how anyone can house hack.

Hey @Adele Tegger, I wish you the best of luck with your goals!

How easy is it to change the code when a tenant moves out?

You'd do one schedule E with a business use percentage of 3,300/4,000 or 83% You'd set up depreciation with the full amount of basis, and set business use to 83% The reason two Schedule E may be helpful down the road is if you plan to sell the property. 

Thanks in advance if you take the time to read this and help me out.

I am from out of state so wanted less maintenance in the short term while I build my portfolio and grow to the point where I am comfortable hiring a manager!   

Of course I got an attorney.

My wife and I are in the Atlanta area in search of our third rental property and we are super excited about the idea of starting a co-living strategy.

It seems more your fault for choosing the "lying" contractors from the tenants point of view, if you ask them to pay up, I'm sure they would.