In today's market, I would have a hard time believing that you can buy an asset and conservatively model those returns. 

He has taught several people how to do it and it’s crazy every time I hear him talk about his model.

Be aware that the interest rate on that LOC is variable (typically adjusting each quarter), so have a plan (back up funds) to pay it off quickly if the rates go up too high too fast for your business model.

Have you modeled the purchase and exit?

I will model my own process after this.

I love the FHA -live in one unit, rent out the rest House Hack model- but these properties seem to be too expensive here.

We are moving away from them as they aren't fitting in our model as well as we thought they would.

@Jared Matson Whether you should flip and sell or sell with financing is entirely up to you, your business model, your market, and your financial goals.

If I decide to go with model of covering all utilities then rent would be $550-600 a month per student.  

We found that flips with enough spread to make it worth it to us were getting harder to find so we switched our model to a lease option model and it has worked out well for us.