It typically has pretty good rental demand with UCONN Law School, St.

The PM should be an expert on state law, and they should have policies and procedures in place to handle these situations.

The estimate I have from a cost segregation firm is $316k (w/ study) vs $28k (no study)-Assume we're in the 37% bracket  -Does this mean, I can claim a $117k depreciation deduction for this year? 

There is well developed  case law that points to a guarantor having to receive a benefit in order for the lender to hold them accountable in the event of a default etc.

As long as you are following the law and the lease, you shouldn't worry about lawsuits.

You set your own payment terms with YOUR client and then find funding for them.The Capital Syndicate is a private lender firm that offers financing through their own company, but they also provide you with a list of about 150 other private lenders. 

Are there any creative things that could be done to get to my goals or from your standpoint,  or is it pretty well a firm "not gonna fly" type scenario? 

Consider Hiring a Legal Expert- German property law can be complex.

A lot of our housing stock here has finished basements or in-law suites, so with something like that you can generate significant rental income for an inexpensive conversion. 

To thrive in real estate investing, you must maintain a firm grip on your finances.