What key things in this deal would attract a private/hard money lender?

The problem always is that the worst areas are the cheapest and therefore attractive when starting out.  

You didn't speak about cash reserves, whether or not you would have an income outside of the property while going to school, how much you'd be putting down on the property, how you'll fund the build out on the areas to attract students, and if you have any experience with rental properties. 

Except for home owners all others ("tacit enablers") turn a blind eye to this deceptive practice that costs home owners upwards of $10 million a year in Colorado.

Something about Real Estate has always attracted me but I don't know anyone involved (never really searched too hard).  

I hope this thread will attract more attention to receive more helpful points as yours and hopefully some may actually give referrals along the way. 

Often times our minds create a million excuses before we even take a step.  

I am currently holding 2 mortgages for properties that I am renting so the seller financing is very attractive to me.

As it stands now the value of the multifamily town homes are roughly 1.3-1.5 million. 

It's very nerve wracking to think, us as a household that makes roughly 35,000/year will have to pay back 15,000.Originally enacted in 2007, the Mortgage Forgiveness Debt Relief Act allows debt forgiveness of up to $2 million to NOT be considered taxable income if: The house has been used as the principal place of residence for at least two of the previous five years.The debt has been used to buy, build, or make substantial improvements to the home.