For the security deposits - since we will take over is the seller required to transfer those funds to us?

People will talk about getting seller financing and better rates etc., but most sellers have no clue how to manage being a lender.

long story short, I will be starting grad school next year and will not be able to work while in school for the next three years.

The expectations are that any reduction in interest rates of even .25% will accelerate buyer and investor activity and competition. 

They are in good condition but will need work as time goes on. 

One downside is that if they are already paying below market rent, you will probably never catch them up with rental increases.

The more leveraged secured debt you have will impact any cash flow.As mentioned by Nicholas, the BRRRR method could help payoff the HELOC too. 

If the disrepair has been caused by the willful, malicious, or irresponsible conduct of the Tenant or a person under the direction or control of the Tenant, then the cost of repairs will be charged to the Tenant; and3.

When you ask an important question PAUSE   Counting three dots will help   What were you hoping to sell for?

I'm willing to be a little ambitious, considering up to quads that need light work, but my wife is leaning pretty hard on wanting a turnkey SFH.