The vacancy rate in San Diego is somewhere around 3%, the city is growing like crazy, there are already massive developments planned on the east end of east village which will just continue to expand east.

gotcha... although if you just hand in the keys your walking from your downpayment and whatever cash you have in it.your sense are correct all these folks singing on massive debt with 5 year calls are taking a certain amount of risk.. just need to look back to 08 09 when no one could refi and all these properties changed hands.. it was not because of poor operators basically it was frozen credit and banks not relenting or walls st.. hedgefund bought said notes from failed banks and refused to rewrite and took the assets.. since they paid pennies on the dollar for the paper.. foreclosing and reselling was still a better play for them.. 

Even if a conventional Fannie/freddie lender will not finance it, there are always portfolio lenders (who make their own decisions on a case-by-case basis), commercial loans (yes, they can be made on less than five units) and last but CERTAINLY not least, private individuals (a massively underutilized financing source, IMHO)I think your bigger issue might be insurance, rather than financing.  

There is no visible problem to the outside brick or concrete.

I have 12 years of experience in student rentals and there should be a massive financial upside to consider that niche.

I don't think we're on the precipice of some massive crash.  

I source properties and conduct concrete deal analysis for my investor clients.

This far I've been unable  to find anything concrete, but that's what I'm looking for. 

I hope there is something concrete in The Act that I can use to ensure that the business agreement of the lease is fulfilled by the tenant.

Well, if I didn't have to worry about money, I could further my other pursuits (become a financial adviser, build a financial business focused around helping those in crisis, and a little bit of rubbing it in every person's face that has told me I can't do it).I'm still wrestling with this moral dilemma, but one day I'll have it sorted out and could give a more concrete answer.