@Cameron Marro - I would work to get her out, move in to the bad unit and rent out the good unit. 

Or should I invest regardless of student loans if my hope is to use FHA loan for smaller downpayment and then eventually rent the house out in a few years once I move?

Quote from @Ivan Castanon: Quote from @Jay Hinrichs: depends on market most of FLA that wont move the needle.rust belt mid west you can find deals for those amounts.. going to be rougher areas of course. do NOT follow the advice of anyone suggesting second postions or gap funding.

Hello @Timothy Hilario,I think there are benefits to both strategies.If you move out of your apartment and rent it as a mid-term rental, you could see decent cashflow without pulling equity out of the unit.

Even if the rental has a decent cash flow with additional flood insurance, we're still not sure we want to take on that risk as we are out-of-state investors (planning to move back to KY in the future, but not now) and we don't like that it will potentially bring down the perceived value when we try to sell it in the future.The seller has never lived there and has not provided any information on if it has flooded before or not. 

So when you build your pocket neighborhood, which is an interesting concept, what's to stop an undesirable person from moving in.

I got sick of it one night and told my landlord I will be moving out in 3 months.

Taking action is what separates investors from dreamers.Todd, you nailed it—real estate is a long-term game, and selling a business that’s already producing income is a big move.

So advice to get the house against him and he will move out on his own is HIGHLY unlikely.  

Does seasoning start when a renter moves into the property?