It has a strong potential for cash flow.

Potentially my first deal!

I large assignment could potentially turn a seller off 

I have a spreadsheet of how profitable I am going to be with the deal and these are the numbers: 245k purchase price, 20% down (49k) 7.2% interest giving me about $1,330 payments, looking at neighboring rentals with the same layout and interior I can potentially rent it for $2,200 hopefully but I expect the worst. 

The topic of tenants using fake id online is concerning and poses potential risks.

I'm sure I missed a lot of potential pitfuls, but does anyone think this kind of idea might have legs in the right market?

The proposed changes would allow a duplex, triplex, or fourplex to be a (P) Permitted use in all single-family zoning districts: With Reno's significant land constraints and overall lack of inventory, I believe ADU's could potentially provide more affordable housing for tenants while allowing investors to be more creative with their properties. 

Discussing a fair resolution with the renters could mitigate any potential legal ramifications while maintaining a positive landlord-tenant relationship.

I have a potential opportunity but all the learning courses/modules I can find don't really touch upon this (for good reason maybe). 

Bumping it to a 3-year could potentially save you ~0.25% or so.