House Hacking with my college student?

[Jason Wallis]

Hi all, first-time poster here!  I am an "accidental" real estate investor, currently with a small portfolio of real estate.  One commercial building, one short-term vacation rental, some timberland with a partner, and another commercial building with a partner (both in LLCs).  I am in Birmingham, AL, and want to buy either a single-family or multi-family that my daughter a junior at UAB can live in with some friends.  I have a couple of questions from my recent experience and research.

1. I have seen some mention that student housing tends to attract higher than normal rental rates.  Is that true?  How do I justify the premium rent to her roommates?

2.  With the financing I have on the other real estate (one is considered a second home) should I pursue commercial financing? 

3.  Her school has a large commuter population.  Someone mentioned finding a location near the fun stuff, bars, and restaurants, over proximity to the school.  Has anyone experienced this?

4. I plan to pay her rent to the LLC that will hold the real estate since we have money in a 529 that is tax sheltered. I assume this is legal. Does anyone have experience with this?

thanks so much for any help!

Jason Wallis