Current rate is 5.75 and credit scores are around 750.

I'm currently a college student, so I don't make a lot of money.

What are your goals, what is your current living situation, and where do you live?

If they don't agree, then you'll have to wait until the current lease expires and then move them to your new lease.Read the existing lease closely.

There are situations where it is more beneficial to end the current lease and start a new one (ability to change lease terms, rent amount etc), and there are situations where it makes more sense to just do an addendum.

The current owner is letting me take over the property as a tenant as long as I pay the water bill and the mortgage payment on it and whenever I decide I can purchase property for the balance of the mortgage  they are in no hurry for me to purchase the home as long as the mortgage is paid. 

There is a case for buying well-located solid assets that produce immediate current cash flow at reasonable leverage. 

The sellers says it's just college boys and that's to be expected.He's currently getting good rents...as unbelievable as it may seem and if cleaned/fixed up it could make more as well as increase the value of the property.We own several coworking/coliving properties in the US and Mexico, so we are used to hospitality and properties out of state.However, my questions are;Is this a norm for college students, or student housing? 

Are you saying the current property being exchanged has a debt of $200k and you need an additional $200k to purchase the new property? 

Are you working with a current lender?