There are some good spots near the dental school and downtown that can get good returns and med students can make great tenants. 

There are plans to establish a medical school in the town.My question is: would opening something like a new med school increase or decrease property tax?

My plan is to go to med school in 3 years. 

If I hadn't taken my pain meds for my back after falling on my tail off my truck, I might add some more, this comes to mind first

At least that is what my med tech brother tells me they do in the hospital :-)  

Indeed, other than the area right by the Med School in Kansas City, KS (just north of County Line and just west of State Line) I wouldn't invest on much unless it was around 77th.

Furthermore, it has renters (I believe they are med students) with lease through the summer.

You should do that so that you can get the tax savings.If yes, and you plan to start looking for your next investment: keep the money in a money market so that it is liquid for your down payment.If your purchase is going to be > 6 months from now: keep some money liquid, the rest I would put back into the market in low-med risk assets (bonds, large cap, etc).Hope this helps!

A snapshot feasibility report gave favorable figures for med / healthcare services are on uptick in my area. 

I was truly shocked, Airbnb never ceases to surprise me :D