If i use 2.5% long term CPI and 75% LTV, the return from appreciation on a new purchase would be 10% or double your current return on that equity.  

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

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

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

Current rate is 5.75 and credit scores are around 750.

Now my first property currently has a tenant that is not paying rent, so we started the eviction process.

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? 

Definitely, either the house price is far beyond its current market value, or there are some property disputes.

In Canada we have a 25 year mortgage (for example), but we renew it every 1-5 years (they started a 10 year one as well) at the current interest rate. 

Are you working with a current lender?