Specifically, how to go about managing unrelated persons living together per county or city ordinance and lease structure. 

So I told the seller, I got a bad vibe from this, sounds like this lady is going to live to a hundred, and rent control laws, as well as laws protecting tenants over 62 here in NYC make it impossible to get rid of her.

I am asking because the below-grade basement is not counted toward living space in Kentucky, even if it is finished, and I was told that appraisers count only half of the basement space when valuing the property.

But I guess my best option is to just purchase it at the current interest rate since I still need somewhere to live.

Live in the 1 unit while renting the others.

Additionally, i live in Chicago, so i won't see it before closing which is in 30 days. 

I lived in Katy growing up.

If you pursue co-living properties, I would still highly encourage you to analyze the deal as an LTR as a backup strategy in case things go sideways.

They live on the first floor of a small ten-unit building. 

I have about 20 guys, we do live video walk throughs.