If you do not do it this way then you risk running your unit vacant because college students tend to start looking for a place to stay around Feb-May for the following year, actually more like Mar-May, but you want the Ad up in Feb.

Your lender may have internal risk factors that may push up rates or require larger down payments when you hit a certain number of properties.

I am willing to accept a lower dollar return in exchange for a lower equity requirement and lower risk due to maintenance.  

I don't see any major issues with your strategy, but flipping is always a risk, and you should always have multiple exit strategies in mind. 

Which brings it back to you...what is your risk tolerance?

I am retired and I make sure any worries are at an absolute minimum, focus on getting great tenants and don’t take any undue risks with your business; as an old guy it is much harder to bounce back from a screw-up. 

Down the road when I'm more comfortable I can see myself going out of state, but I don't think I want to for my first experience.If I'm totally honest, I'm probably too risk-averse to make my first property(ies) outside of comfortable driving distance (max 3-4 hours), leading me to look in places like the high desert (Joshua Tree, Yucca Valley, etc) or mountain destinations like Lake Arrowhead/Big Bear. 

Then their is the gigantic apartment for sale on Carroll but that is a no fly zone for me.Combine this with my post from the other thread on too much A-Class inventory coming on line right now and I think it would be wise to really sit down and figure out real exposure to risk before buying any multifamily around downtown or Notre Dame right now.Edit: The above was super negative!

It is a higher risk having only one property in a down turn than having multiple properties.

Fannie/Freddie loans will carry a fixed rate, they will have a lower rate, and they will help you qualify for other loans later.Now, if a bank is telling you they can't refinance because of "seasoning", is that because you purchased it with cash?