Lets talk :) What type of unit size are you looking for - small duplexes/triplexes or more of large unit multis?

Someone suggested going for a student housing rezoning permit but I don't want it to take up a huge portion of the time of my contract or cost exorbitant amounts of money..

Typically a rule of thumb is with no experience and average credit you are looking at 15-20% down depending on the rehab size and complexity. 

Many cities have high overhead costs that consume a large portion of generated revenue.

Together they are 0.92 acre, which is a nice size. 

The purchase contract stated our group was to receive a prorated portion of rent.

People doing BRRRRs getting back a good portion of their investment and breaking even. 

If you found a replacement tenant that he found suitable and moved them in before you entered in any unpaid portion of your lease, I would expect you to receive a full refund of the security deposit.I would check with the state laws and see how much you can sue him for in small claims court.

@David N.there are some  lenders that  can go to 90% ltv on vacation home purchase  (  .....benefit on rental prop purchase is that you can use  a portion of the new property rental income to help with qualifying if needed ...pricing is similar for  2nd homes and rental properties 

Also, our property is 10x the size of most in the city at 1.75 acres.