Is the school growing fast enough to mitigate this?

Rates have bumped up slightly over the past month so you're likely in the 4s no matter what at this point on a pure investment property (not primary residence), but big picture still a great time to use leverage with historically low rates, and to mitigate your exposure to the crazy amounts of inflation we are going to see over the next few years. 

Assess your situations and scenarios, come up with ways to mitigate or eliminate the threats to your business or personal assets, then put a plan around it. 

I am also ruthless with mitigating risk so I am just curious how investors think about risk and leverage in current environment.  I Imagine much of the vacancy risk is helped by a great property manager who finds quality tenants?

To make sure we had all our bases covered we called insurance, they sent a restoration crew out there to do full mitigation, cost $20,000 and my tenant was worried about mold etc.

Most vacation homes in the rest of the country just mitigate the mortgage when rented out. 

If you're fixing this to keep as a rental, I would only care about the things that were stopping me from making it a rental now, or could be so tremendously expensive or dangerous later that I would want to take steps to mitigate it now.

@Rick Reeder I agree with @Cameron Tope I think this proposal will see significant push back and if it is adjusted then CPAs, attorneys, asset managers, and real estate investors will have to explore other avenues to delay or mitigate that tax impact.  

I would either collect first and last month's rent, extra security deposit, something to mitigate the risk of a marginal applicant like that as well. 

If you can figure out how to mitigate that issue and then fix up the place, you can likely end up with a good house, for a good price and locked in at a 3% interest rate.Be creative and stick to it.