On to the background and questions.I am a 18 year old freshman in college at the University of Kansas in Lawrence, Ks and am on track to graduate in 3 years.

Warm regards, Christopher 

I agree that the neighborhood is not far from Detroit Golf, University District and Sherwood Forest which are all kept up quite well. 

This is a bit of a bummer for a couple reasons as it doesn't address your down payment and they are going to get taxed on the rent they collect.Another thing to consider with this scenario is that it could be state and/or university specific. 

Where I live is 1 mile away from a major university and there are a total of 7 universities around town. 

In either case, you might also consider using a VA-Renovation loan (contact Deborah Joslyn at University Lending), which is a good VA alternative to the 203k and might allow you to find those uglier 3+/1+ homes in need of work at a lower entry point and with no FHA-imposed PMI. 

Morgantown seems to be the only area that's growing, and that growth is heavily dependent on a handful of heathcare employers and the university.

CAP rate seems pretty weak being under 8%, but that’s a personal preference not a universal rule.I don’t know where the building is but it looks old and the area looks pretty shaggy but I can’t tell from that what buildings in that area are selling for.

@Forrest ShealyThe truth of it is, most of these A/E firms hire warm bodies, and the young engineers don't really know how to add value 'during construction'. 

Thanks for the warm welcome!!