@Arron Paulino Your posts illustrate the challenges of exiting SFH's in markets where the natural buyer is another investor and not home owner.

I'd really like to see something legal in nature that supports the deal failure, however I'm not sure exactly what to ask for. 

If OP can lever-up while maintaining adequate reserves, he will be in better position than buying with heavy cash position.  

It is naturally insulated and it captures passive heat with strategically placed windows.

In Chicago you request a CHA Burden sheet and that gross number minus utility allowance will be what you get in addition to making sure bedroom size is adequate.  

For example for a rental with $2700/month rent with folling scenarios, how much mimum income would be considered adequate?

In part because the sink is under the window which to me seems like a natural spot for it. 

The owner should look at it more like a DSCR, and should be pricing the property and offering terms such that the income from the property is adequate to pay back the loan.

The rental market conditions are slightly tight, indicating a healthy demand for rental properties.Student housing continues to be an attractive investment opportunity due to its recession-resistant nature and consistent demand.

There are several hurdles during the process:Find the deal - Unless you are marketing or plugged into a community where there are opportunities, it isn't always easy to find the right dealsEvaluate the deal - Without professional guidance and research tools, it is difficult for a newbie investor to evaluate and ARV/FMV or create an adequate rehab budgetSecondary exit strategies - If things don't go as planned are their other opportunities to exit profitably.