Well, in PA landlord tenant matters are handled by the magisterial courts; the magistrates aren't necessarily well-trained on all aspects of law, and their decisions sometimes are counter to what one might expect based on the letter of the law.

@Sam Burnoski, others have already answered you well on the loan aspect, so I am going to address the property itself. 

I also grew up here (I'm a 46er) so I know the finer details of the neighborhoods.

Good point on the SFH landlord vs apartment aspect.

You need to thoroughly study all the aspects of finances and investing and learn your markets.

Just from that aspect I can see why taking repairs is more beneficial.This provoked me to do a little more research.  

Not to beat a dead horse, but never do this, especially if you are low on funds, because it can easily spill over into other aspects of your life. 

If you are comfortable with the other aspects of the property I wouldn't over think why you are getting it at a discount. 

This makes both student and parent responsible for fulfilling all aspects of the lease agreement. 

@Tom Smith Investing in Houston is a good idea from the aspect of population and job growth.