Good point, I guess I am wondering if you frequently see deals that meet the 1% rule? 

You might also want to network with local businesses that may have relocating employees or contractors in need of housing.Local Regulations: Some areas have different rules for mid-term rentals than for long-term or short-term rentals, so make sure you're compliant with local laws.If you're new to mid-term rentals, connecting with investors or property managers already working in this space can be invaluable.

And have you checked the 2/3/10 rule?

I have a lease addendum that are house rules, specific to the property.

My rule of thumb is a .5% savings to refi so I'd want to get you at least to 6.250 or lower.

I ran the numbers on some properties and they meet well above the 1% rule, but that sort of worries me...

Looking into the STR market, i would suggest a couple things to include into your property search. 1) the STR market is very saturated here so look for something unique or offer unique amenities to your guests, this will help your property stand out 2) different set of rules for properties located within city limits vs without i.e. outside city limits doesn’t require a permit which the city is cracking down on the amount of STRs on any given street or neighborhood 3) HOA is a big deterrence as a lot of HOAs don’t want any rentals of less than 30 days so an in depth search into covenants and by laws would be doing your due diligence.

But with students (and their parents), it's so crucial to lay out your rules/policies bc once you acquiesce at the beginning, it makes for a loooong year

In the listing, the house is a 3 bd / 2 ba so would we count the area we live in as another bedroom/ living space or would I’d using the bedroom rule for taxes, just say we rent out all the rooms, writing off 100% ?

I won't rule out any option other than DST's as in a perfect world I would do both for diversity and a little more liquidity.