As my experience grew, I established well-defined procedures and processes that streamlined my investment strategy.

You can do both of the above options together.A third option is your operating and maintenance procedures.  

A university that has "dorms" featuring clubhouse with private Starbucks, massage.... really simpler to say imaging the perk it's got it, for freaking college kids.

Follow legal procedures if terminating the lease, which may include a lawsuit.

A good, proper screening procedure will certainly minimize the number of people like this living in your units.

Im still trying to figure out the procedures for buying property in the forclosure/short sale market. 

However, going forward you should be aware that even the best property managers are hesitant to go against set procedure as they are licensed and follow more strict rules than a homeowner could possibly get away with. 

You can always use that as your template for future use.Once you've got your deed, just follow your county's procedures for recording.  

I am a wholesaler and our normal operating procedures when we have a buyer is to have the buy look at the property.

Though, if it turns out they really cannot afford to make payments on the home anymore it's best to go through with the proper foreclosure procedures in your area.