In my opinion, I would stretch out your available cash by utilizing hard money or private lenders for the purchase and rehab, then turn to the bank for term debt.  

We have the paying off student loan debt conversation about once a quarter but it just doesn't make sense at this point in our lives.

It's important that the owner receive notices that their account is delinquent - I want to say that the fair debt collection act says you have to allow 90-days before you can start collection activity but don't quote me on that. 

I make a decent living working at a busy restaurant here in town, but I am very interested in using real estate investing to provide me with some financial freedom.

@Daniel @Daniel Highsmith the "gotcha" could be the general financial stability of the HOA.

As an owner-occupant, you may get homestead exemptions and/or others.Again, your financial professional will be your best resource.

I used to leverage debt, but not much more for that matter.  50% down is what I used to go for.  

I hope you'll learn a ton of stuff and work toward your financial freedom.

The parties involved have extremely limited financial resources and are looking to do it themselves.Thanks in advance,Grace

Given the shift in education's environment (especially in my state) I recognize now the importance of multiple streams of revenue and financial independence.