The demographics and map data don't take the students into account, but they're really what's driving the market.Low property values and ever-increasing student rents are a recipe for a market when you can pick up a duplex in decent condition for $150k, and rent it for $500/bed (that's an EGI of $36,000 annually for a 3/3 duplex).

You may end up needing to go through the whole foreclosure process which can take a lot of time and cost a lot of money, and you may end up getting the property back in much worse condition than when you sold it, potentially with a squatter in it and months of lost rent, and in a worst case scenario you will be in a much worse position than if you had just sold it outright. 

For example a price below where I think it will sell for, attracting more Buyers, but not too low where I'm doing unnecessary work filtering out Buyers who don't understand the market conditions.

In true syndications, a sponsor shares all financials and will do a capital call if market conditions dictate more capital is needed.

As for other ongoing expenses that will really vary by property age and condition.

Do you understand what conditions caused the issue?

Local market economic conditions. 

Based on location and some rough math, he's definitely looking for market value (stabilized asset) vs the current condition.

Most states allow you to enter with notice for a valid business reason, and checking the condition of a property that has been vacated is certainly a valid business reason.

Save for some unusual complications, you seemingly met all the conditions for your tax benefits.Now, to traps and gotchas.Trap 1.