Doing so in a residential neighborhood is fraught with possible legal problems:

The city, the neighborhood association(s), the county and the state likely have questions about the school, whether it is legal, licensed, and inspected as specified by all jurisdictions. What about any traffic impediments it causes? Fire hazards, who certified the school, the teachers, the equipment, is food served, is it a commercial or nonprofit concern, on and on. You get my drift.