LLC, S-Corp, etc) that files a tax return or do you own it in your personal name and report rental income on IRS Schedule E? 

If you've done your due diligence and the potential rewards outweigh the risks, it might be worth taking the leap.

You got bad advice from your prior accountant.You received rental income and it should have been reported.it seems like maybe he was lazy and/or doesn't understand rental concepts.The only exception is if he is paying 'under-market' for rent in which case the property would be considered personal use.I would fix the issue and charge him market rent. 

What does that have to do with a personal refi loan in my name?

I do agree that you need to go in person to see what is going on.

How would you fund this if you are working with less than 20k personal funds.

I have a Series LLC I use to collect income for my consulting business, but the income goes to my personal checking account.

Did a "hard money loan" with family using gift tax exemption and trust as collateral (despite what Dave Ramsey says, my father and I have an incredibly strong investing and personal relationship).

Here's why:Future Cash Flow: Once your debt is paid off in three years, you’ll have a solid cash-flowing asset that can provide ongoing income.Asset Growth: Property values, especially near a university, tend to appreciate over time.Debt Reduction: You can leverage the rental income to pay off your debt, essentially using your investment to achieve financial freedom.However, personal comfort and risk tolerance play significant roles.

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.