Are they being evicted or is it a young couple who moved to the area and had been living with their parents until they found a place?

I assume you don't live on $23k/yr, so there must be a bunch of depreciation thrown in there. 

However, I've been having difficulty renting one of the rooms because I've noticed some of the potential renters are either super particular, end up wanting to live on their own or with one other person (I have one room currently rented), flake, or come up with an excuses for not meeting with me. 

If you are planning on living in the house, 5% down is the lowest you can go.I would also encourage you to start tracking how you spend your money and see if you can cut spending to save more money or find ways to increase your income.

So I wanted to purchase something that would not only make me money - but also a place to live.

People have to live somewhere.We host a ton of investor meet ups for ALL things real estate, short term rentals, long term, fix and flip, buy and hold.. you name it, we cover it! 

But sometimes, that constant bombardment of discounts/freebies coupled with everything I go through on a daily basis, is like death from a thousand small cuts.But would I really want to take those things away from people who risk their lives for others, even though it can feel hurtful to me and others? 

It is spotty at best.You will need real live STR insurance.

Yes, I live in AZ and have managed my own STR in Delaware for 2 years. 

We are super excited and in the process of purchasing a home to turn into residential assisted living space which our community desperately needs.