I used $80k to pay off personal debts and $50k to remodel it by myself with my two hands.

I would network in person or in FB groups. 2-3 months to close is crazy.

One-person rental units are in the highest demand, and co-living directly appeals to this market.

Cosmo - I personally don't know Phoenix well, but if I had to do this in another city I would look at income levels, crime levels, and population growth (if you can) by zip code and/or area within a DMA as a starting point.

I personally would avoid over investing in this unit.

I personally like index fund investing in funds like VOO.  

The absence of a personal guarantee from any disqualified persons is still required, just as with third-party financing.

Was that person me or another person as that sounds like something I have been telling people? 

You must report rental income on Schedule E and can deduct rental expenses like repairs, maintenance, property taxes, mortgage interest (allocated between personal and rental use), and depreciation for the rented portion.

If you have, you have put yourself at great personal risk.Again, I recommend you get a lawyer as soon as possible.