I also say that because as the property appreciates you can always refinance the loan to gain more cash flow or cash out etc..Rarely have I seen investors hold their loan for the full term.

You can still get private money loans, cash out refinance or home equity lines of credit to fund your purchases, but just have all that worked out before you make the decision to purchase.You might be asking what are the negatives.

I'd purchase a second home and fulfill the loan requirement for stays etc.

Generally there are three categories of multifamily investment properties – which will greatly determine your loan options.These three categories are based on the number of units at the property.2-4 Units: While these are “multifamily” properties in the sense that there are “multiple units” – you will generally have very similar options for financing to traditional residential loans on single family rentals – think the traditional 30-year fixed rate conventional option or DSCR Loans – and the coveted 20% down payment option too.

Maybe there's a need for furnished rentals above anything the students need.

Do you or someone you know do these loans ? 

FHA loan How did you add value to the deal?

Thus, when the loan comes due, the property could easily be worth less than the loan amount, leaving the owner with very few options, none of them good.  

So in this case if you closed the purchase with a DSCR loan, assuming a  Straight 5 Year PPP structure, On year one if you do a Cash Out, the DSCR lender will penalize you with 5% of the loan amount for paying off their loan early. 

Got a deal on a house$150-170kRealtor gave estimate for listing at $199kArv is $285-$315kTrying to figure out how to swing it Scenario : guy I know will front the cash to me to buy it for a cash deal but short term loan basically.