@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.

I would suggest that you keep the greater Kensington area on your list and maybe concentrate your search to the neighborhoods closer to New Kensington. 

Pick 1 or 2 and concentrate on those and only those.Narrow that focusGo Hawks!

Does anyone out there have feedback on current rental pricing trends and days on the market vs. say a year ago for cities that have a high concentration of absentee owners and/or cash buyers in locations that are NOT second home hot spots (Memphis, Birmingham, Richmond, VA come to mind)?  

Typically areas that have a higher concentration of small multis for sale are lower income, so I would highly suggest making a list of a few in your price range and driving the neighborhoods before making appointments with your realtor.  

Banks generally don't like concentration risk either so shopping around for each new loan may be necessary.  

I would concentrate on repairing the credit and getting a job, then start looking for deals.