Anybody can live in the large student housing complexes but there is a much more limited supply of rental houses near the University. 

There is plenty of end user demand, but not enough housing supply or enough equity capital.

Being a remote investor will cost you more as you will need services at the location and someone trusted to handle deliveries, replenishing supplies, turnover inspections, etc.  

If anything that might restrict building but I don't see them running out of water for existing homes so wouldn't that mean home values going up because supply would be restricted.What kind of climate risk could occur there?

I may just have to take my medicine and learn from the experience.

The plus side is the airbnb supply has fallen and we have noticed a HUGE increase in our gross STR rents, roughly 20% higher then a year ago.

The IRS will require them to charge a “reasonable interest rate” if they supply seller financing.

There is also a real shortage of labor and supply in the trades.

The purchase prices were 170k and 180k respectively and the budgets were 90k and 100k respectively and they could've gotten a better rate with a credit union, but a credit union will not supply the rehab funds - HML does.  3) The application would be taken in, project numbers would be held up to lender guidelines according to your exp and your credit. 

Reason we are trying this strategy is just due to the fact that just like the rest of the country there is limited supply in this market.