But what if I get one room filled today and another 2 weeks later and another 1 month later.

Even if they don't catch you now, they will catch you later when you try to sell a 2.5 bath that is only a 1.5 bath and the lower bath needs to be removed and capped.

Document the condition of your property inside and out so you have that as a reference point later down the road.Yes having a conversation will be helpful so that they clearly understand how to care for a septic and that you cannot flush certain items.

A year later he knocked on our door and offered it to us.

Even if we get a small group talking, it could be the start of a wider conversation later, when more are interested.

Have a system in place already if you ever grow bigger or expand, don't have to change it later or figure it out later. 

Also, have you made any significant alterations to the property or if it were put on the market today, would it be indistinguishable from a standard 4-bedoom house (are there any extra walls for the SRO, constructed locks/barriers etc.)If its a standard SFR and the leases are very short term - there is a path that you could refinance this with a DSCR as basically a Short Term Rental and then potentially change strategic course back to SRO if needed at a later date

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

I know the 20yr city development plans, I know of the waste water treatment facilities that are wrapping up approvals and have not even broke ground yet and exactly how many w/s laterals will be approved with such. 

 I bought my first house in 1987 and  5 years later I got a job transfer from Miami to Central Florida.