Therefore the demand for student housing has increased while current owners await insurance settlements for their damaged properties.

Borrower failing to pay taxes and insurance?

find out from insurance company their maximum before you swap it to vacant housing insurance and probably do it even if they say 60-90 days. 

Is there a way to insure that the original owner will not pocket the monthly payment I make leading to foreclosure of the property?

They were talking about self insurance and about how you can basically setup your own insurance company.

Pension funds, insurance companies?

If I add in rent income, it would not be enough (because rent income is about $300 and mortgage is about $500 per month (with tax and insurance)), it would increase debt to income ratio). 

I tried to adjust the following year to my W-2 income...they look at gross wages on your W-2, not net (net of 401(k), net of before tax health insurance, etc.) which is what your 1040 adjusted gross income is based on it. 

You'll probably throw in your attorneys fees, survey, title insurance, transfer taxes, recording fees, etc.. 

Closing one property is just as stressfull as closing 20.Just run all of the numbers and get copies of leases, past 3 months expenses, taxes and insurance cost and you should know if the deal is right for you.Good luck, and all upvotes are appreciated!