You seem to have a lot of competition in your field, but you keep plugging along.I've bought numerous homes on the private market, and I wouldn't have it any other way.

Curious everyone's thoughts on 1) whether I should rent this out as an entire unit or on a room-by-room basis, and 2) what seems like a fair starting rent to list it at?

Does this seem like a great time to get involved in real estate projects with a planned 75% leverage?

It seems as if any buyer is going to have the same issue. 

That does seem like the most straight forward option.

It seems like a great place.

While the market in Denver seems to be solid, and everything I find in my research seems to confirm that, I'm unsure of what the rental market is like and for what demographics (family, students, traveling nurses).

Based on budgeting, section 8 seems like a viable option without any major cons.

Renting by room seems a good way to get started with rentals, leases, and all the other caveats.

Your post makes it seem like you are sure you made all the right choices, but gosh darnit, the market is the problem and you and your partner aren't to blame.