for most banks this is a quick thing they will pull and abandon the loan if its not sufficient.  

Once is sufficient if someone wants to take time and share their knowledge with you they will.

I suggest you credit taxes to the buyer and collect taxes from the buyer sufficient to pay them, your attorney should set this up.It won't be long before someone gets nailed for perdatory practices, IMO.A CFD is a financing arrangement.

That means you normally have a choice...Take a higher interest rate on all the debt (the existing mortgage debt and the student loan debt consolidated into it).Be 1% of the new loan balance more in debt by tacking the LLPA onto the loan balance, assuming sufficient equity to still be at or below 75% LTV.Write a check for 1% of the loan balance at the closing table.If I was going to redeploy those net cash out proceeds on some other investment with solid cash-on-cash returns that choice would totally be OK, but if I'm just nuking student loan debt then from a personal finance perspective those options all kind of suck! 

It seems that the only positive outcome for me in this deal is that the property increases in value sufficiently in 7 years for me to refinance and start on a regular mortgage.

And over a sufficient sample of rentals, I'd be willing to bet that the expense ratios are in the 45-55% range, which is what the 50% rule says.As for your comment about outliers, that's always the case with averages and large samples. 

is having a llc sufficient enough to protect me from their mistakes as in if they get a huge law suit the only thing i would lose is what is in the llc?

Where population growth is stagnant or falling, the current housing supply is sufficient so there is little increase in prices.

Maybe an index fund would be a better choice until your capital grew sufficiently to sustain a rental through a hard year or two?            

Even with low or no money down, you could find yourself in deep trouble if you don't have sufficient reserves for emergencies.