Labor is cheaper down there, USD $2.50 per hour, which is normal rate. 

Or, once you finish your exchange you can immediately do a cash out refi, which is not a taxable event and you can use that for any purpose you want.

Oh and I forgot to mention that they are a ton cheaper than an attorney.

it was my version of cash for keys - only it was more an agreement to not have their ability to rent again trashed for keys (definitely cheaper).Sorry you're dealing with this. 

Is there strong demand for rentals and is it potentially possible to rent a room for 1500-2000 depending on the location (slightly cheaper than a studio from what I've been seeing which is how I priced my rooms in AZ)?

One thing you may want to consider is some sort of umbrella insurance - that might be a cheaper option, I'd price out bother.

This implies renting is initially cheaper than buying and at high LTV, rentals are initially cash flow negative.  

That would be cheaper and easier than redoing a roof.I would think so, but I believe the next door driveway would than create an encroachment for that property which the seller also owns.  

(condos are cheaper, but not always ideal and the condo fees take a lot of the rent that could go to your mortgage). 

@Zach Lemaster I think that is a great point; we are getting a phenomenal education along the way, and it is a heck of a lot cheaper than college.