Helps with your debt to income, better opportunities at cash flow, and typically requires less down to purchase.In regards to challenges, I usually build in an extra 10-15% to deal with things that I can't see behind the walls, including dry rot, electrical or plumbing issues, etc.

Very common scenario for sure, if it'd be helpful to look at some options feel free to reach out!

In addition to what was said above, for the software that has a free trial option, sign up for it and use the software for a day (or at least a few hours) as if you are using it for real, then call their customer support too and get a feel for that. 

For their three-year, 12% option they give an example of a $1M investment with the following preferred returns:- Without compounding: $360,328.77- With compounding: $431,237.45Taking 12% disbursements over 3 years on $1M would be $120,000 per year, or $360,000 over 3 years.

Up front fees (outside of appraisal fees) are typically a red flag when dealing with a HML.

Are there any options for lower down payment loans in general or even for college students?

Typically, we see anywhere from $600 to over $1000 per unit (maintenance and turn costs)  depending on these factors. 

@Rene Hosman Did some research on these options and found some unfortunate news.

I say that because every decent legit place I know of in market, yes offers the option of doing just tenant placement, for self-managing. 

The way to get access is typically reaching out to the sponsor and getting the PPM and the documents you need to do a thorough review.