Having kids around will never be a positive...you can avoid it being a negative, but at least for me, with my kids around (3, 5 and 7) I wouldn't be able to concentrate on the deal and they would definitely be a distraction to the seller. 

I have been told to concentrate on the buyers side because we have inventory.  

As part of the hunt for the first deal I'm concentrating on looking for homes with terrible yards.

I have been concentrating on cities in the Midwest.

I would concentrate on the numbers of the deal.  

Should I diversify my list more to different prospects or should I just try concentrating on one group for now with the first 4 rounds?

@Charles Worth  right now I see them spread all over the country to competition in any one market will be negligable.. but if one decided to concentrate on a market and they bring in cheaper capital.. they will cream the best players and deals as the flippers who are getting squeezed on profit will be looking for cheaper capital.. 

I have a bachelor in business with a concentration in entrepreneurship and management.

from now on i say no pets, charge somewhat high rent for the area and don't charge for credit check nor run it until sufficient income qualifies (verified monthly income is at least 3X rent), and 1X rent + 2X security deposit funds are show available. so far this weeds out all but the most serious and financially stable, leaving busy 'career' professionals to concentrate on, as most street folks don't bother bringing paystub to photocopy with application or don't have 3X rent to put where their mouth is. 

You and your co borrower could rent one of the rooms in your apartment to another studentPerhaps You could get a second job long enough to get qualified for the FHA Loan with your co borrower.You could take 6 months off from school and concentrate financially on getting approved for the FHA loan.