They make you an offer on your house on a 12 month lease.

Quote from @Charles J Sabo: This will be huge for house hackers out there. 95%LTV on 2-4 unit properties.

Most suburban cities have VERY limited lots and most of those are zoned R-1, meaning only a single-unit house can be built.In the City of Detroit, it's cheaper to buy one and rehab than build!

@Michael Daniel Ultimately, it's all about confirming what the housing authority pays.

I also wouldn't touch hilltop with a 10' pole. struggled. old homes, over budget renovations, lots of issues. realtors push people here since it's the only place cheap houses close to downtown can be good but homes are 1900-1920.

If you're purchasing a single family home you can use traditional financing like you probably did on your house or you can do a commercial loan.

I have done it successfully on my last 2 buildouts, maybe 3, but only because I was able to acquire the properties at a very low price and I did all the work in-house (myself and some hired hands on staff).

I'm curious of the current market demand for student housing and appeal to rental investors.

Your biggest issue is that $50k may not let you get a nice house and have any reserves.

As for the decision, it's really tough for any of us to say without knowing your goals, your situation and the numbers on this particular house.