You treading on thin ice here by intermingling your distinct LLCs.

University towns can be dangerous, but I'd stay within walking/biking distance for best returns and occupancy rates.

I know enough about 1031 to be dangerous, but I will wait for a few of the more experienced folks to chime in with some education.

Compare that to the county that I live in (near SF, population of 1.6M) where there are only a few hundred homes for sale, Indy looks appealing and yet a very dangerous investment.

The branding in particular would be done in the content that I produced to advertise the open rooms along with physical branding on the outside of each house (ie distinctive color accents and perhaps even an led sign).

Brandon Turner, co-host of The BiggerPockets Podcast, will teach you how to find, analyze, and finance incredible small multifamily properties, as well as the dangers to be aware of before you make any offer!

Please find one who is not afraid to explore the downside dangers with you--one who wants to help you buy five houses and not just one--one who is doing enough business to not ever send any sales pressure your way.  

The property is scheduled to be torn down by the city under the dangerous building code14.

Living in that illegal basement apartment is dangerous and I would think the Fire Code Official would insist that the tenant move out. 

Also, would it be dangerous to be highly leveraged (5% down) in a conventional loan and risk mortgage rates shooting up?