But, if you drive around the city, especially downtown, new construction is happening all over, indicating that the city may just be in the beginning of a rise.What are you thoughts?

At any rate I will leave a sign on the front door indicating your intention  and schedule.

What indicator(s) would you recommend looking out for to know when the "right" time to buy is?

Your agent needs to get the listing agent to indicate where you need to be at in order to make the deal happen.

My research indicates I'd probably be looking at an interest rate between 8 and 12%; is this true?

Both the Vanguard and the Schwab indices are great!

But if you only look at the data that caused the last crash as an indicator for the next one, it will blind side you. 

I'd encourage you to do some analysis on your area don't just make the assumption the market is good because of the college although that is a good indicator.

Taking conservatively, $13 per person per night and 50% occupancy, indicates a potential of $3,900 per month, gross.

We bought our first flip house at a live auction from Williams & Williams, I was the only person there but bidding against 4 other online buyers, the auctioneer took bids in an earpiece then announced them and looked at me to indicate it was my turn to bid.