I think this is extreme price gouging, especially since we did not agree to pay that kind of money and if he was expecting that kind of money, he should not have awaited to the very end to tell us.  

That's an extremely rare opportunity though. 

To put it nicely, I would proceed with extreme extreme caution, if I were in your shoes. 

Really appreciate all of the insight and information.It's obvious from your post that student housing is an extremely high-touch business, but one that you have mastered - timing in marketing, expectation setting with kids, quarterly check-ins, the list goes on.So my question is, as an out of state investor considering investing in the same type of space, how would you characterize other property management companies ability to successfully run a business like this? 

That is an extremely difficult accomplishment in the near-term.

Note local rules could be more extreme.  

They are two young professionals with money, they have extremely high demands, they "know already" because they talked to their "xyz professional buddies already." 

AprilApril: Extremely bummed, almost didn't want to get out of bed.

Im sure you know that philly is very neighborhood specific and markets are extremely hyper local.

We have reached out to the city and they have provided some information about grants but that seems extremely complex without much chance for success as we would be first timers.My question is what options are out there to help with this situation.