Don't set a lease term for more than 2 years due to mortgage terms.Some units are sensitive to market conditions, college students again, run by semesters, when school is out they'll be gone.....or will they?

Students are generally harsher on the property but they are less price sensitive.

This ties to what @Ryan Evans said of being hyper sensitive to location, which in up and coming areas is somewhat speculative, thus increasing the risk.

They can be very profitable but are also very fragile and sensitive to economic downturns like 2009 and right now. 

I certainly had my 6mo of living expenses rainy day fund that I took from, a little bit, and other semi-liquid sources I could use in the worst case, but I played it by ear and was able to take my time with many of the non-time-sensitive renovations.Because you're owner-occupying the property for at least one year, you can spread out many renovations such that it's a more constant trickle of cash required every few months or so.

Sharing a house with someone while having kids can be a sensitive issue. 

How are these risks accounted for in their financial models and what sensitivity analysis has been done to demonstrate how their margins of safety afford buffers needed? 

I always try and be flexible with closing times sensitive to sellers needs. 10 days or 3 months whatever they need.That wasn’t the case on this property.

And of course as @Joel Owens indicated cap rates are pretty sensitive to quality of tenant and lease. 

What safe-guards are in place to prevent someone from using student loans to invest in real-estate?