A simple way to look at student housing is "By the Bed".

Due to the increased wear and tear from more occupants, is it reasonable to ask for more rent, such as 2800 or 3000?

Im going to try and keep this simple.

My goals in real estate I think are fairly common and simple.

Has anyone seen success from online advertising, or do  physical yellow letters increase the perceived legitimacy of one's investing operation to a prospective buyer?

Our plan is to get in, rehab the property, increase rents, decrease expenses and of course increase the NOI of the property. 

You can give a flat amount, or pay the difference between this months bill and last mo ths bill (you are assuming any increase is due to you) or divide his months bill by 30 days, and pay for the days you were there (if you do work for 2 days you pay 2/30 of his bill)

You can offer then less then the loan default value, and as time passes, their motivation increases.

As you may already know, your funds are a simple interest loan secured by a single-family property. 

Always try a simple conversation first, usually is the best way to go.