Being very close to the university will always attract new renters. definitely a red flag as to why the rents are so low compared to the market rents in the area. after your due diligence and everything has checked out you can definitely start increasing rents to meet the market rents for this area. like you said business is businessI specialize in investment financing. if you're looking for a lender for this purchase or later down the road for a Cash out refinance message me.

I thought I'd add an experience I had back in 2014 and maybe it'll help someone else down the road. 

Maybe 3% of my rentals call more than 24 hours in advance.  97% call me when they are already in town or when they are on the road heading this way.

There are a lot of bumps in the road that you will encounter but if you push through it is possible.Before you really get started you really need to determine what your over all goal is.

This is a tough business and it that offended him, he has a long road ahead.

It is very close to a major highway, home depot, and a main road with hundreds of commercial and retail businesses on it. 

So 123 Apple Valley Road (the one you just sold), buys their 1031 as 789 main street LLC (the only member is 122 Apple Valley Road and mainstreet LLC does not file a tax return).  123 LLC would also buy to complete the 1031, 654 Oyster Ave(another disregarded LLC where 123 is the only member and Oyster does not file it's own tax return).This will still be a little awkward for you as 123 LLC (the S corp) owns 789 LLC and 654 LLC. 

and $1200 for a two bedroom potentially down the road?

@Scott RoelofsA cost seg study is a great strategy to reduce your immediate tax liability currently, especially if you are in a position where you are likely earning more income now than you will be years down the road say in a partial retirement setting. 

I will likely take you up on your offer of advice down the road.