But hey, it's just nomenclature so I wouldn't get caught up in the semantics.As far as the 70% rule goes, it is very much just a quick rule of thumb for a down and dirty analysis and varies by a variety of things, not the least of which is the value of property.Regardless of what the project entails, it's prudent to run actual numbers to evaluate the opportunity and see that it meets your criteria. 

What's entailed in the reserves?

I would advise you research more into what bidding on a foreclosure entails.

A non-publically traded group of properties or blind pool can be set up as a Private Placement along with all the rules that entails.

For 2015, you can also contribute up to $53,000 to your Solo 401k, of which $18,000 can be allocated as Roth contributions.Qualifying to set up a Solo 401k entails the following:The presence of self-employment income, andHaving no full-time employees, defined as those, besides the business owner and his or her business partner and/or spouse, working more than 1,000 hours per year.

Having graduated from the UW less than 5 years ago, and with many friends who still attend, I can attest personally to the thousands who would like to live nearer to campus, but can't afford the rent that their own place (read 1 or 2 bedroom) would entail.

As the name entails - Limited Liability.

It sounds like you have done some cursory calculations, but you would be well advised to ignore what a "typical" project would entail, and get inside this unit, do a complete walk-through, put pencil to paper for worst-case scenario based on what you see, and if the numbers work at that point, then move forward.

And I thought it might be good to have a management company taking care of it until we can figure out exactly what managing a rental property entails. 

What really got me going about real estate was an opportunity to generate wealth beyond what is entailed by this so-called "rat race".