Your cap rate will depend on what class of neighborhood you invest in.

Even in higher class areas, the maintenance/cap ex is often under estimated.

If you're new to this asset class you might want to use 85%. 

Class C/D area so looking to rent out after Reno done3.

@Michelle MaciasRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

To me this would be okay if you are in more class A areas.

Do snowbirds want to live in Class D areas?

My class C rentals this is a common scenario and I have this situation frequently.

And if all fails, I could sell after I graduate, and take the proceeds and pay off my high student loans if needed, or just "level up" to a different asset class when I am in another profession. 

But although they are available, you are better off reducing the PPP in a declining rate environment.