You did not mention where the engineering school was located, but if its located in the United States, investigate an FHA 3.5% down payment mortgage for 30 years with an interest rate of 4% max, which would require owner occupancy at least a year (you'll be there two years). 

This lease allows the total occupancy of ....

What do they see them selling for per unit, what is the market occupancy rate.

Also check occupancy and fire code restrictions.

I'm still wondering how I can make creating paper work, but it I think I'll be staying away from offering loans to owner occupants until I can better understand the risks.

The more recent EPA lead paint rules require that for pre-1978 construction, that renovations be performed in a lead-safe manner by certified professionals (and even that requirement does not impact owner occupants who are DIY, since the DIY owner occupant is exempt from the requirement).

If they do not have criminal records  My opinion is that everyone, adult or not must be listed as occupants but not all adults need to be listed as financially responsible tenants.

You change your occupation on the Experience tab.

You could rig up a battery power & timed light / radio inside if there is no power on at the property, all goes to help with the look of occupancy.

Ask for market occupancy and rents.