Outside of my friend group I found that most people looking to rent a room in a house with strangers were medium-term type renters so there is a lot of what we call "churn" or turnover and vacancy loss.

But they're more difficult to manage because of a lesser renter pool and the appreciation tends not to be as great. 

Hi Kailis:You can have a 3BR SFR, rented to 3 singles, though it's not advisable, you can give each renter a separate lease.

Lastly as an illegal unit it is  huge liability if there was a trip and fall claim, fire etc your insurance may not cover.I recommend renters insurance for whoever lives there is mandatory to add another layer of protection. last option not considered is you living in the bonus unit to have a free place to live with minimal risk 

I think working with an insurance broker is a great way to go to derive the most competitive quote at no cost to you.I also think that you can increase your deductible up to say 5k as well as request your tenants carry renters insurance.

Stretch your boundaries and your comfort zone, don't jump them.Lastly, if you would not want to live in the area, or building, as a renter, then don't buy the building, nor in the area.

I most want to avoid spending considerable time showing units in-person to prospective renters, esp. before we've pre-screened them.

I did pretty well in Madison county and Rankin Newer homes for me no foundation issues the best renters the city has you DONT need to rent section 8. 

We purchased our first LTR property this summer and have a renter since September.

Your local partner can help verify if the area really supports those rents long-term.Regarding school ratings, they’re important for single-family homes but may not be as critical for duplexes, which tend to attract a more diverse renter pool (young professionals, retirees, etc.).