Everyone's situation is different.

Has anyone else encountered a situation like this?

Would love to connect with you and hear if you have any contacts to share.I'm also interested in what the section 8 situation is like in Rensselaer, if anyone else here has experience with it--maybe @Nate Monson or @Michael Fitts would you know anything about Section 8 in Rensselaer? 

For example, it's difficult to appease a situation if 1 tenant claims they're using less electric/gas than another. 

If you’re using financing, this situation might also influence lender decisions.I have many rentals in Jacksonville FL and have had to evict three tenants.

Quote from @Trevor Finn: Hey @Jordan Laney,Oof, that's a tough situation.

I think the ultimate situation for what I described above (not the plan, but a possible outcome) could look like this:Rent main house by the rooms while constructing ADU.

That's a bit different than this situation, but just wanted to share.

That a situation where only the bank wins, via interest payments. 

I think the best way to safeguard yourself for situations like this is to ask for referrals of current students who joined for the same reason you are interested in learning.