Although normally it is better to start with an existing location. 

If they want one, then make it timesensitive- only for x years; location sensitive- within xx miles ofthe existing facility; make them pay for it, on top of the propertyvalue.P.

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.  

Which BTW most of our closings are subject-to the existing financing, so we have little cash into the deal, just the arears and the closing costs.You find NOD and pre-notice via;   realtytrac.com / equitydepot.net (if they cover your area). 

In addition, committing ~ $200K requires some level of sophistication on the part of the investor and you are more likely to find someone to agree to your terms in smaller transaction sizes, but even that will be difficult. 

Create rooms within existing square footage, look into ADU properties, etc. 

But I could easily make this a 3 bed, 2 bath within the existing sq ft. 

Our existing properties will appreciate significantly, and we have equity in 2 of the 3 properties.

Equity first comes in the form of down-payment, but you can also force it into existence with rehab or wait for it with appreciation.This is why it is so important that you re-invest your cash flow into more equity.

Builders can give you some sense of cost and project scope and local officials can let you know if any grants exist for affordable housing, re-zoning efforts, etc.