There are a number of successful people like Eric Moeller as @Valerie Rogers mentioned who have not only "released" properties, but are creating master lease agreements on a larger scale. 

The issue is that in those areas there is not many multifamily properties when compared to a larger city like Torrington or Winsted. 

The owner is renovating the kitchens this summer, and expects to raise rents by $50 a student per semester.

The problem is that the way the property was renovated means that it does not allow for two couples and a shared kid (and maybe one more one day).

Have you tried any larger lenders as well?

Then ask for some comps that have the "upgrade renovations" that you're thinking of doing.

You could also tell them they have to vacate due to new ownership and that you will be renovating and they need to move and just leave it at that.

What recent renovations - if any - have been done?

Decided to right the owner a letter explaining why I wanted to buy the building and the renovations I planned on doing.  

Our only thing stopping us at this moment is that we are currently doing a complete gut and renovation on our personal residence, (that should be a flip but we actually want to keep) we are putting all of our time and money into it.