While there's no strict requirement to match the original mortgage terms, reinvesting the full proceeds without financing or using leverage to enhance returns is key.If you don't reinvest the full amount, any shortfall ("boot") will be subject to capital gains tax, and depreciation recapture may apply.This post does not create a CPA-Client relationship.

To thrive in real estate investing, you must maintain a firm grip on your finances.

Locate a Motivated Seller that will consider Seller Financing.

The other tip I would say is really get a good relationship going with a realtor in the area if you do not have one to give you the exact data you are looking for to be successful.

I intend to rent out the units by room to college students (does it sound like this would work in this area and what are some general tips/things I should look out for?).

I may start with house hacking to build confidence, take advantage of owners financing (this will be my first home), and to build my network first. 

The bank will make you leave 25% equity in the property - but you also still want the property to at least cash flow some - so be careful how much equity you pull out / new debt you take on.I would do a cost benefit analysis of what your actual gain is in cash-flow on buying a new property with a (currently) higher interest rate (if financing), versus just holding on to the current appreciated property and enjoying that cash flow.All the best!

Plus you can't typically get conventional financing because they want to finance to a person, not an entity.

@joel, FHA will finance non owner occ??

I have programs that require only 10% down for the purchase, and will finance 100% of the rehab.