If it's on the MLS, and just sitting, it's likely that it's not a great deal... but maybe as you pointed out you could configure for student housing.  

We ended up sitting down and compromising with both our ideas and found a median; house hacking a duplex.

You tried it their way (if I recall they suggested the public adjuster) and it backfired. 

Seeing that we already have $120K on hand (it’s sitting in stocks which we grew from the $70K from our 2019 cash out), I’m not sure that having the additional $165K on hand is completely necessary.

It's still pretty liquid if something goes south, but at least it's appreciating and building value rather than just sitting in a bank account, losing value due to inflation. 

.- she cash-out refis and we invest together on something- she adds me to the title, seasons for 6-months, I cash out refi and invest- she sells to me under market so I have a safety net of equity in the property, the $600/ pays the note and we use the money on the sale to invest- she sells and we move on to something else (but uncle lives next door and uses the property for storage, so has talked her into not selling at the moment)$120k cash is silly sitting there generating $600/month... 

But sometimes I listen to three podcasts in one sitting.

When you have $50-100k sitting there that you say, "That's free and clear money" you are going to be so hooked!  

You never know when that opportunity will present itself.  ...have imaginary phone calls where the person(s) sitting next to you, that you overheard talking about RE, can hear what you have to say...to this imaginary person. 

I just remember watching those shows where there are billion dollar plus developments built in china sitting empty.and Last time I was in Singapore we scooted over to Maylasia and you should have seen all the high rises there basically 1/4 sold or mainly empty ..