My wife and I also own a small business that is our main focus, so for now I'm just looking to diversify and get the ball rolling with turn-key.  

You have to learn when to let things roll and when to be aggressive. 

By focusing on the student market, I'll have the ability to rent entire units to pre-determined groups, or rent on a per room basis with individual students.  

I'd like to roll the money from that deal into my own apartment deal using a 1031 exchange however I have some concerns and wanted some feedback. 

I suppose there could be a pre-payment penalty for us but still, w/ terms like that, it's a no brainer.

You may be able to get it rolled into the loan, and escrowed to be released as improvements are made.

Did see some reviews where the pre approval took a very long time which I dont mind.

Are they pre-screening to ensure that you are even a likely qualified prospect?

The buyer is paying for the RIGHT to "hold" the property at a pre-negotiated price for a specific period of time.

I was just given a pre-approval for $180K, lender said best option is to use the credit cards for the 3.5% down, it would be a 203K loan, lender said stay in there for a year and then I can rent it out.I currently have a 3 family property, I am renting 2 of the units out and am staying in one unit.