Net operating income equals gross rent minus physical vacancy minus economic vacancy divided by operating expenses.

So we are on the same page, a dependable passive income must meet three requirements:Reliable - You continuously receive the income with minimal interruptions, in good and bad economic times.Inflation Adapting - Your rental income increases faster than inflation, so you have the additional dollars you need to maintain the same lifestyle.Persistent – The income continues for a long time; you and your spouse will not outlive the income.Selecting a dependable passive income location is the second step in the process of consistently buying dependable passive income properties.

What’s unique about our current economic environment is that you have a simultaneous increase in both at the same time which is creating a one two punch for everyone.

Buy in a primarily owner-occupied neighborhood to attract tenants who are a lower economic risk.

If it isn't then sell it, do not keep a negative CF asset especially as your first rental heading into an economic recession and probable depression.

Properties were in fairly rough shape, vacancy around 70% physical occupancy and closer to 60% economical occupancy, with rents 20%-25% below the market, and an overall poor class of tenants.

That is true, the inflation can be our friend …unless the government decides to mess us landlords up again, like they did during Covid with eviction moratoriums.That world economic forum with “own nothing be happy” is kind of frightens me.The government May one day to decide to tax landlords heavily or come up with some other nonsense.I am probably being too paranoid.. 

If you are not interested specifically in student housing but like that area specifically because of the proximity to an economic driver then I'd say it depends. 

@Mel Anic Steve is correct above plus this likely would fail the economic substance doctrine

What type is the most economical and where could I get financing?