I use to follow Dave Ramsey's principles to pay down debt but then I read something very profound "the number one wealth building tool is not income, it's time)".

Purchased sight unseen!

The majority of them are not going to be big investors in anything,  but need Dave's basic principles of money management as they start their adult lives- which is basically don't buy things you can't afford and stay out of debt.  

I haven't closed on a property yet (I actually haven't even made an offer yet *sweat-smile emoji* <---look that up on Google if you don't know what that is because it's pretty spot-on), but I've got my sights set on purchasing some student housing in a small college town in Upstate New York.

@Will Barnard I’m not sure what you mean I bolded the parts where it explicitly talks about acquiring purchase and sales agreements with the intent of reselling to the public as a principle or in an agent role.

Personally, I like interest only loans, pay off the interest and refinance into a new loan to pay off the previous principle.

Very short sighted. 

Here are the numbers for the investor over the course of the option:Here are the basic results: (a full spreadsheet is available upon request, but the numbers are real) This was for an investor from California doing an OOS in Arizona.Here are the basic results: Results Cash In - From Tenant Buyer - Year 1$25,000 10 Year Cash Flow - Investor profit$85,654 10 Year Rent Increase - Investor profit$7,709 10 Year Tax Write Off Investor $12,848 10 Year Principle Reduction Investor$29,890 10 Year Profit for Investor $161,100 Backend Equity to Investor$43,140 Total Cash Back - for Investor $204,240 Amount Originally Invested $70,000 Total Profit for Investor $134,240 10 Year ROI 192% Yearly ROI 19%  

My question is, do I put that in a high interest savings (currently 2.05%) or re apply it to principle?

The principle would be protected with a note and deed of trust given by the partnership and you would then split all cashflow while renting and the equity from the sale after all costs and principle have been paid back.As you said there are a lot of ways to structure this but I like to keep things simple.