But this has been only a paper exercise this far , having no experience in Apartment or Student housing is making me a bit anxious if it was a right deal. 

It all depends on supply and demand both for the investment type and the underlying use of the property.In general though it's a fairly simple financial exercise. 

@Sebastian Harris Your operating agreement will outline major responsibilities, profit splits, who does what work and who can exercise control. 

My advice would be to focus on matching assets to your personality and interests...in the long run, owning super risky properties is simply not worth it...and setting numbers for minimum return on investment is an arbitrary exercise. 

The military is going to pay for my education and I would like to go into a field that will enhance my position as an investor.

The lot is located in a thriving residential area and I would would love to build something in keeping with the existing homes to preserve or enhance the community without changing its vibe.

They often think that an option to buy would be cheaper.My terms:Lease with option to buy, not rent to own.10% option of agreed upon price.1/2 option paid upfront, 1/2 added to current rent price spread out over 2-3 years.All option fees paid is non-refundable (credited as down payment if it goes to sale)If tenant fails to exercise option at end of option period, all money is forfeit.Historically, I've heard statistics that these option to buy situations almost never make it to closing. 

It depends a lot on the property type and your plan with the building.For example, for a typical multifamily building in NYC, you might gets 5+5, 7+5 or a 10 year quote over a 30 year amortization (the '+' meaning that your initial term of 5 or 7 years is at a fixed interest rate and after that initial term is over, you have the ability to exercise an option to either fix or float the rate for an additional 5 years).Tell me more specifically about the asset and I may be able to point you in the right direction!

You should do the following exercise. 

(Not so fortunate for him.)With that being said, you still want to exercise caution in dealing with his property.