Financing a 4br foreclosure for a rental/fixer-upper?

[Nathan Gornto]

I live in a college town of approximately 100k residents + 25k or more students, lately the rental market has been more student oriented and it seems that rents are rising in general. I have had my eyes on a 4br about ten minutes from campus, it has an appraisal value of 81k and is listed at 65k. Would this make a LTV of approximately 80%? This kind of property seems like, if nothing else it would make a great property for me to live in, set up an office in, and rent out two rooms to pay my expenses. It may require a few thousand worth of materials and a few hundred hours of labor before it would be in a good position for a flip, but I am no stranger to this kind of work either. Before I schedule a viewing to inspect its condition there are a few questions I have. Is it really worth it being a landlord in a college town? My gut tells me the property would be more valuable to hold, increase equity and cash out 2-4 years down the road to finance another property. Any advice on financing? Are foreclosed homes eligible with any FHA programs?