It's so bad that my last purchase was in Indiana, which was my first OOS investment, and likely will continue to look there if the market doesn't improve here.  

She's not going to have any leg to stand on in court if you get that far unless there's some explicit language prohibiting the owner from assigning responsibilities to another legally authorized party, and I'm guessing there isn't if another PM company was maintaining the lease and provisions - and the fact that the tenant was voluntarily working with the other PM confirms the acceptance of an authorized agent even if it's not explicitly stated, the same way if you accept rent from a tenant after a lease expires you imply acceptance of the lease terms continuing (which is why you should always have a holdover provision). 

And while yes, no one has the same pricing (combination of factors), I also continue to check on a regular basis our rankings and how we "present" on total costs per stay vs. our competitors.My gut says there is price creep and we might have a ways to go before the market really corrects.

You’ve heard from several experts I respect so nothing I say below is any reason to believe otherwise.

Two, you'll have a much easier time obtaining a mortgage product if you have a track record of W2 income.In the meantime, continue implementing the strategies you mentioned: save religiously, build your credit, pay any existing debt owed, etc.

Use this time to study at the university and continue to study real estate.

Being a 20 year mortgage expert and real estate investment veteran, we used our mortgage company to secure below market financing.

Same PM became a successful broker for me and continues to find me solid deals.  

To get started, continue learning through podcasts like the BiggerPockets Real Estate Podcast and books like "The Book on Rental Property Investing" and "Set for Life."

The Memphis market here in Tennessee continues to be strong.