I agree with @Brooklyn McCarty ...Too much money to get in and too many restrictions.

It sounds like you won't have any trouble qualifying..In Oregon there are some tenant laws that can restrict active CAP rates, but those with current market rents (or that can attain them near term) can approach double digit return rates.

Like small apartments, grandfathered-in apartments, or access ways that would never fly with new construction.

Be very careful when calculating for a refi or sale-  recent zoning changes have been confusing and ridiculously restrictive for student housing-  some properties are $50k for a reason, run-  it looks... bleak.

If he's a vet, I'm sure there are resources he has access to that others don't, in addition to the regular places for support (eg local church). 

Hey guys,
Wife and I are looking to get started in long term rentals to hold long term. This would be our first rental. We have about 400k HYSA. Ideally looking for something around 200k. 
We have previous experienc...

Throw in the fact its a county seat, has access to not only rail, but regional air, three US highways, two state routes and a state park, and I would wager there should be many more than 10,000 people there.

Lots of moving parts...and it's wonderful to be able to start with a blank canvas and design exactly what you want to build (as opposed to retrofitting based on the restrictions of an existing older structure).  

@Alan DeRossett California,   I get it but the rest of the country I don't believe has as restrictive regulations or commands higher rents due to those type of improvements. 

Some that need property access to do a virtual inspection, and some that dont.