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?

Qualify all student applicants AND THEIR PARENTS OR GUARDIANS before renting. 

I am starting from ground zero, with no prior background or capital to invest, but with a strong desire to create passive income for my family.I currently work as a middle school teacher in California, and while I love my profession, I have a strong desire to explore avenues that could potentially provide financial stability and additional income streams.

@Blake Sanford  Blake - what happened with this potential deal?

Depending on the demand in your area, this could potentially generate enough income to cover a portion of your mortgage payment.Negotiate with your lender: It's worth reaching out to your lender to see if there are any options for restructuring your loan or modifying your payment plan to lower your monthly payment.

This exemption is applicable if you've lived in the home for at least two of the five years immediately preceding the sale.For investment properties, a Section 1031 exchange, often called a "like-kind" exchange, allows the deferral of capital gains taxes if the proceeds from the sale are reinvested in a similar property.

Would the potential rental income count towards offsetting the mortgage?  

Having the right insurance coverage/riders is critical - if you're not properly insured and something happens, the asset could potentially be wiped out.

Channel all applicants to walk the property with your father at the agreed upon time and date.  

Moreover, our spacious yard, characteristic of our corner property, contributed to minimizing any potential disturbances.