Right now I am just shooting blindly I bet.

I bet you have to put down 30%+ in order to satisfy the bank's DSCR.Frankly, the fact that you're asking these questions means, you're nowhere near ready to buy a property of this size.

Just do an internet search for Certified 203k Contractors or Certified 203k Contractor Directory and you'll find it. 

ROI is much higher and can out perform those betting on appreciation.

Option number 2 will be your best bet.

Your best bet in getting your money back is to talk with the highest possible manager in a thoughtful way with documented dates, emails, and phone call records.

And then there’s this post: EDWARD BURNS FINANCES SCAM ARTIST (SCAMMERS LIST)Just so you know, real private lenders are not typically out there emailing strangers on the internet to try to give them loans.

From my research it looks like flips are a good bet for this area.

A 3% increase is a nuisance increase in this economy, I'd bet you're under renting at that pace. 

If you're not expecting this to appreciate (like if that university is decreasing in size or stagnant in its growth) I think this could still be a good deal, I would be willing to bet that you may be able to find something with for a lower ask that may need some love to get it back in shape.