After a year I would move out and rent both units out while living with my parents.

You can also learn how to paint by painting rooms in your parent's house. 

My other concern is that he is claiming this to 1-stay in the house somehow or 2- withhold rent.

You can drive there, a bigger place can hold the whole family including grand parents and sibling families etc and is a good bargain.I think places like Hawaii (fly to) destinations will take a greater hit.

I've drawn the new build for an owner-occupant to have a single family home but with the option of having a "tenant"/roommate or family member (perhaps in-laws, or elderly parent/grandparent, or a brother/sister, who wants private, separate living space, etc.) living in their own space with their own separate utilities.

@Eryn GarciaPros are that students generally have consistent income from loans, parents, grants.

And then he should get a refund for his withholding. 

My sister and parents in Denton, Denton County have seen their property taxes go up 20%, 40% and 50% the past three years.

As a former "foreign investor" myself it's all about the team that you hire in the US make sure they have experience with FIRPTA Withholding and nonresident alien financing.

I'd rather not ask my parents or family members to co-sign eitherSo the question is what would you do and recommend in my situation