I certainly agree that one should tread with caution, just wanted to offer a slightly different perspective on the matter.I've kept an eye on the University market and it 'seems' like I've seen more property being placed on the market there than recent years... and my 'assumptions' have been that its related to OSU's housing market grab. 

If this post generates interest, I'll lay down model assumptions and returns for those interested. 

Will someone let me know if my assumptions are correct please?

I'm trying to create an expense sheet that will dictate what our shopping price range will be, and occupancy rate is the key factor that I don't feel comfortable making an assumption about.

Just based on the fact that it's priced in the median range already AND it needs major renovation (My assumption is you are talking $50k-$100k), if the seller isn't willing to come way down, it wouldn't pass my 5-minute test and I'd walk away.  

Nobody on this forum can give you the correct answer without knowing more about your home.Your assumption about staying under $225 a sqft sounds a lot like the sellers I meet who say "If that 2,000 sqft house sold for $200,000 then my 3,000 sqft house should sell for $300,000."

Most likely this will take at least a year...and that is a big assumption there.  

My assumption is you can only bid up to the FJ.

My father-in-law will be lending us $300k in cash for the down payment and construction costs and we are in the middle of consulting with our mortgage broker to see what we qualify for but my assumption would be ~$400k.

Is that an incorrect assumption?