I am sure  there is excessive wear and tear.

As Elijah said, if the deals aren't cash flowing in excess of the preferred return on day 1, don't distribute monthly.

And, don't forget the new people they hire will start with a much lower total compensation package and when the time comes, they will let go those people that started with a fat Bay Area salary.I don't disagree with you that a lot people will move out of Bay Area, but at end of day, people like SF Bay Area/New York, they will always be the hubs of the world at least in next 50 years.

So we pay title company > title company pays loan, and if there is any excess, this goes to the seller/original borrower.Assumptions, while they still happen, are much more rare in my experience. 

But the truth is I budget conservatively and would rather have excess reserves than be scrambling to come with cash when expenses come up.  

Even though they are paying for the utilities, it is putting excessive wear on the system and I worry it will fail prematurely, which would be my cost to bear.Does such a product exist?

I like deals that generate 2k or a more, a Month, in excess cash flow after all debt seduce and expenses are paid for.

yup... if you had your days in the contract.... you can say anything... excess damage, deferred maintenance, whatever you want... get him or her back to the table and renegotiate.

I will add that I heard a smart person recently ask a room full of of attorneys "does anybody know of somebody that actually used their LLC to shield them from liability that was in excess of their umbrella policy?" 

I agree with both Len and John - the discussion about increasing time lived on campus is still happening within University administration and there seem to be more supporters than detractors.I would also add that there are at least two large-scale operations in the neighborhood, both having in excess of 400-600 units.