No rehab needed is great, sure, but with only 120k to cover everything, we're limited and I'm assuming our budget would only find us cheaper deals that need work/rehab. 

For commercial sized apartments, the asset and the income coming from that asset are the real security behind the loan.If you are syndicating a deal, inspections are included in costs covered by partnership.  

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years.

You don't want to get yourself in a situation where you have to cover part of the monthly mortgage every month otherwise how will you get to travel and live the investor life right? 

You can also require a paren on the lease for any student as a back up to cover damage outside the first. last and security.

However, given the current home prices and mortgage rates in areas like Natick and Framingham, I’m uncertain if rental income will cover costs like PMI or if these areas offer good potential for appreciation and equity growth.Any suggestions on areas that meet the 1% rent rule or have strong appreciation potential would be greatly appreciated!

If they are using 506b, they can rely upon a representation from you that you are accredited.  

In my contracts I always ask for more earnest money than I put in myself, that way, it covers some of your carrying costs and due diligence related costs.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processesWe recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

Can it cover the monthly shortfall?