This is not “student housing” in the traditional sense - even the vacancy risk doesn’t exist as it’s a 12 month lease / they work over the summer there, etc.  

You would only pay taxes on all passive investments in a traditional SDIRA at distribution, unless you have a mortgage, then the portion of the income derived because of the mortgage will be subject to UDFI (unrelated debt finance income) which will trigger UBIT (unrelated business income tax). 

Traditionally most lenders will require 25% down, however there are a handful that can do 20% down without any experience. 

Honestly, I've given up on finding cashflow anywhere close to the city due to rates and prices, BUT some other opportunities you may want to consider are:Live in flip - mentioned earlier in this thread, always a solid option in any market.Condo conversions - good money to be made from this and since they're a little trickier than a traditional flip there tends to be more inventory available that would allow for a profit.ADUs - come February 2nd, ADUs are allowed BY RIGHT on any SF property in the state, owner occupied or not.

Often, traditional lenders offer better rates, which can significantly improve your profit margins.2.

Honestly have never touched the traditional mortgage side of the bank. 

If you go with your traditional family insurance premiums will be about twice this, since they don’t specialize in this market.b.

FHA is for sure not going to be an option for him, last option is purchasing from an investor with owner financing, or lease to own program where he will not need traditional financing. 

The first misconception is that you can declare a property headed onto the market only S8 eligible, refusing to consider traditional applicants.

I’d love to take advantage of a “traditional” mortgage (or even FHA?)