I was trying to listen to my gut, and it felt like some of these upfront costs didn't quite warrant were I'm at at this moment.

Since day 1, the tenants have been contacting me on a daily/weekly basis requesting repairs.Some of these repairs are warranted (replaced the water heater, fixed broken windows, fixed faulty sprinkler valves) while others I feel are not (most recently the light bulb in the garage isn't working). 

So if you think you can buy using personal loan and then refinance into a long term loan, find out if the finances of the association are in order, ask management if anyone had trouble obtaining a loan recently and if the association is warrantable.

I would refinance after both units have been rehabbed if there is enough equity to warrant it ideally pulling money out of the RE that can be invested elsewhere (BRRRR).I am far past the point of house hacking (I did it when younger), but besides that aspect I have used this technique as well as this technique with LTR.

There’s also more homework and knowledge required when analyzing condos....they probably need financing and likely don’t know what non warrantable condos even are.

If they don’t, that warrants an explanation.

The college would probably settle since the college doesn't want the bad publicity, warranted or not.It's a moot point because most people will never challenge the college they went to because that college convinced them that "they" are the experts.

They can be harder to get financing especially if it’s a non -warrantable condo.

that violates the tenant's warrant of habitability. 

I also agree your fees are high, but now terribly out of line to warrant not going through with this.