Your returns could be increased if you are willing to rent it by the room to individual students. 

However, if you're a W2 high income earner or business owner, I can't imagine it makes any sense to flip houses, mail mass post cards, wholesale, or build lead gen websites with the value of your time being better spent other places (such as learning about real estate and increasing your income through proven means), such as at your 9-5pm or growing your business, and your real estate is a long term process and you don't need "home run" deals to qualify or make it work.

- The increasing cost of damage repair and potential mold growth

While borrowing for a down payment is risky, increasing your savings will lower your interest rate.

Change all lighting to LEDTo increase revenue: 1.

This demographic is projected to keep increasing over time, so I would do whatever you can to hold onto this property (ie cash flow well).Furnishing 700 sqft with PB or West Elm (you and my wife would get along great, Bonnie) won't be price-prohibitive and well worth the cost.

Lastly, if you’re currently taking a homestead exemption on property taxes, once that drops off (if you’re currently taking chose to transfer the exemption to your new home) your property taxes will likely increase $1k-$2k thus increasing your monthly mortgage.

Do you think the area will increase in value?

People have failed twice now with the housing bubble and the recent meteoric increase in rates because they were gambling with the rates to save a percentage point.  

Hoping (SD) rental amounts have increased and renting it out/refinance if able/eating the cost. 4.