students deserve nice places to live. we aren't trying to be slumlords but i do realize that students probably have slightly lower expectations than other types of tenants, so i feel we wont need to break the bank in the level of finishing details like we did on our own home but we will provide housing that is clean and safe and attractive. also thinking we can use some creative materials and methods to make the units party-proof. maybe we get lucky and find some long term professors or grad students and don't have to do annual turnover on every unit. even so, i budgeted 8% for property management after watching david greene's webinar yesterday.the heloc would allow for an easy down payment and a nice buffer for rehab, and i have 750+ credit score and good wage earning history, so i think a conventional loan should not be a problem to obtain. a cash out refi might be an option on the horizon if we decide to really crank a proper rehab but the units (from the pictures i saw) are livable as-is.should i be more specific here on the address/market to get better help?

I would say if your not at the level of occupancy you want, then try it.

Exclude everyone that will be above your Investment level $$$$$$. 

I will be managing remotely and I'd like to install cameras to monitor the ground level entrances and the driveway. 

At a really high level, this is how the GPs and LPs work together to perform a real estate syndication!

I cannot wait until I have some level of experience to be able to positively contribute also.In the interim, we are looking at an off-market deal with a friend of the family.

We want to even the floor up to the same level as main house and are unsure if we should request a permit for it. 

This actually helps out, since the dirt is drier and we can dig further down, prior to hitting the creek level.  

The income will presumably be offset by the losses (depending on level of losses and income)

Everything that goes right or wrong is all on you.The advantage of buying an existing business is that if you do it right, you get to stand on the shoulders of giants to take it to the next level.