By almost any measure.

A good exercise that I did was to look at different analysis measures and make my own excel sheet.

Unlike intrinsic values which may attach to personal property (it may with real property too) intrinsic values are difficult to measure in an open market, thee is no base line, that is not true with real property as value can always be assessed. 

By that measure, if lots are selling for $55K to $60K, houses should be selling around $275K to $300K.

Just for good measure I would post a few more flyers around campus at the different dorms and event places.

With the seller's records and my advisors, this is a deal that will be measured and known before I take it.

This is important because if you have to put out more cash for closing costs, this measure is going to change potentially significantly.Annual Cash Flow Before Taxes: $5,597.60Cash Invested (25% Down Payment): $61,475Cash-on-Cash Return: 9.1% (I don't know about you, but I wouldn't be super excited about this result.)To do a real analysis, you should be more concerned with projecting out cash flows and resale value as best you can and running IRR, but I think that the Cap Rate and Cash-on-Cash shown here at least indicate that the price is too high for this property.

OVERVALUED: By which measure?

I have clients that own 1 to 5 vacation rentals here on Mau i and once you hit that threshold of 5 you may be put into a commercial status (5+ units), so qualifying can be a bit more difficult, looking at such things as:What has that person owned and what has been their management experience collecting rent and managing propertiesThe borrower's credit score, income and personal and business tax returns will be considered along with two years' operating statements and a current rent roll for the property.Also important are property metrics, such as: Net operating income: The annual income, minus expenses that a property generates from its operationsDebt service coverage: Measure of cash flow relative to debt payment obligationsLoan-to-value (LTV) ratio: A measure of the loan amount relative to the value of the propertyThe property has to service its debt at a comfortable marginOf course each lender can be a bit different, so it's good to shop around if needed.I hope that helps.BTW - what do you consider big money?  

You now have a baseline to measure from.