Sounds like a great idea!

Stuff as simple as replace cabinets/counters and repaint.

@Taylor Cave  You make it sound like you can place 8 students in an 8 bedroom house and collect $500$-650/bedroom.

However, it is one more thing to fix/replace if it breaks, whereas it is the tenants problem if it is their unit. 

My understanding is that in order for Investor A to use the 1031 exchange to defer taxes, he has to purchase replacement property and not use those sale proceeds for his other properties -- or quite frankly, anything else. 

However, if you ever want to replace that home, you'll have to move it off his lot.I would consider appraising the vacant land and trying to cut a deal that's fair.

Sounds like a good deal and you must be handy to have done all that work.

There was already the tentative possibility of moving out of it altogether which sounds like would be beneficial in order for it to qualify as >50% business use.  

Sounds like you have a lot to contribute here!

Sounds like a solid deal to me.