There are plenty of transient markets in Florida where the supply of median home priced properties can cash flow well but it would make no sense to purchase a luxury property in that market. 

I am also looking to build/develop the property in a build to rent fashion.

Just posts that say get a lot of quotes because they can vary considerably.Need to replace a supply line from the main to the house.

The area has seen above inflation rates of appreciation for the last three years, and there is significantly more demand for housing than there is supply, leading some companies to create their own housing for their employees.

Now with the increased supply of STRs, and less demand, everyone is dropping prices to compete.  

There's just too much supply, too little demand right now and the cellar dwellars are sucking up whatever business is out there. 

The report the realtor gave me shows the Sewer system as OK, but under the plumbing it says "water supply tested and functional: No.

its supply demand.. and right now with the FOMO and rush of investor into that area its created again a huge over supply and the market will correct and that means values will drop like your seeing.. 

Up to now I aimed to maximize the Repairs and Supplies categories of my Schedule E, to make sure I have as large a deduction as possible.  

Not to say that weeks before the semester starts you can't get tenants but tenants look well in advance and if you don't secure someone  well before the semester starts you  can run into trouble filling the unit for the year with students,  depending on the area supply of course.