How should I go about buying a property for grad school?

[Eric Russell]

Hello all!

My girlfriend just got into graduate school and will be attending a 2 year program in Fort Lauderdale, FL in May. We started looking at rental properties and they were a bit pricey. I figured "Hey, I am looking to buy my first home, you're looking for somewhere to live, why not buy a house for you to live in down there?" She has two roommates lined up to live with her as well. I am trying to figure out: 

1) Is this market too hot to go into right now?

2) She would be paying "rent" to me via student loan money. Is this a good idea?

Any words of wisdom would be greatly appreciated!