When I do a walk through with them when first showing the house and I ask them questions such as what they are going to school for, are you on any of the sports teams, what fraternity are you in etc just as small talk because I have learned over the years from asking other student tenants which has worked amazing for me on whom to look out for.

More demand than supply.

If you cannot get rid of them through vigilant housekeeping and extermination issues then somewhere they are being supplied all of their necessities.

I have spoken with a real estate agent we have used before and he thinks as long as we can supply the plans, we should be okay but he did let me know there were some additional items that will be needed if the person buying the house has an FHA loan.

I ask myself this because some properties lose some or all the possibility to cash flow because of the mortgage payment.Should I just wait till the supply increases on my area to start investing?

If rental property is in short supply in your town, then rent increases should be occurring.

There's also a decent supply. 

They can knock on doors, drive neighborhoods, go get supplies, whatever is needed.  

In your shoes, based on the info supplied, if they both do business law, that's likely enough for the business structure parts you're looking for and likely either will do the job.

Even though we are technically long overdue for a correction, supply/demand and cost of new construction have not changed and it will take years to balance out and allow the housing market to soften.