The idea being to promote studying instead partying (potentially decreasing the damage/complaints on the property), incentivizing the tenant to stay throughout their college career (decreasing turnover/vacancy), and developing some additional motivation for a tenant to choose my property over another similar property. 

If we again go by the info on city-data.com, the population has decreased in that area by 8% since 2000. 

Sometimes I’ll overpay A SMALL AMOUNT, in order to get my terms which will decrease my overall costs.

(both in increased net rent and decreased operational costs, as well as other perks like lower advertised rent)

Or, are you using the 6 months worth of rent as a down payment, thus, decreasing the LTV to 75%?

In 2009-2010 when prices had plunged the risk of the market had greatly decreased .

I wouldn't decrease the number of bedrooms.

Under RESPA, is it legal for the lender's credit (line 802 on HUD) to be decreased?

I agree that my expenses could be refined above, and I have the hard numbers to support the cost associated with these units but I understood the 50% rule as being an ultra conservative metric that would cover CAPEX+Insurance, taxes, vacancies, etc...Also, the 100K is included in the loan payment but would likely not be financed, making the loan payment decrease.

As your equity increases, even when your net returns increase, you often find your return on the equity decreases.