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. 

Unlawful eviction occurs when a landlord evicts or attempts to evict a tenant without a warrant of eviction or other court order.

@Luca GianiFor flipping definitely a LLC is warranted.

I am certainly not suggesting that you do nothing, but I do believe a cautious and conservative investment strategy is highly warranted.