HAI is Housing affordability index right?

My initial plan was to buy a pretty cheap terraced or maybe a semi detached if affordable near a university, with 4-5 bed-rooms and have one room for my self and rent the others out to university students.

I would not entertain this request in any way. 

@Kawika Burgess, oh, to be that well off that I could afford to negatively cash-flow tens of thousands of dollars until appreciation meant that at a break even point had arrived - IF I sold right then! 

I was thinking buying and then owner financing to the current tenant for the right rent of the sales price i sell it to them for, if they can afford.

Prior to Real Estate I was in the Hospitality and Entertainment Production industry.

People making $50K a year are getting squeezed out, and can't afford to buy a starter home that cost $150,000 in an average area.  

You shouldn't even entertain adhering to their schedule.

All the advice as to go get some money and jump in, while that's great for cheerleaders, it isn't good advice especially when someone coming in says they can't afford to lose. 

If they can't afford $100k from the current owner, they're not going to be able to afford $140k from you.3) You should have the appraisal done now, before anyone really commits to anything.