But my biggest fear was starting out; taking out a loan or using savings for the initial investment, and hoping that everything works out.

This is just a quick example and we can get more specific in a private message.

You are free to spend $800 worth of time and energy to save losing $100 if that supports your business model all you want.

Its typically foreclosure that gets the borrower to reply, so we send a couple save your house type letters, while starting foreclosure in parallel.

My question is do I have to transfer funds to my checking/ savings account and let it "season" for 60 days before using it for down payment/closing costs for the purpose of getting a mortgage?

Based on the fact that you are a full time student with no money and no credit your best approach would be to concentrate on school, if that is your desire, graduate, save money and build your credit.

Is the partner just the initial capital and then they are out after refinancing (Private Money)?

I would prefer private lenders but they can be difficult to locate, and so I'm looking at hard money.

Ya, i understand that commissions come slower and bigger compared to homes, but i was prepared for that wait, because i am currently living all on my passive income of my current rental portfolio as long as i stay within my means and have a few months worth of living expenses saved away for the times i loose a renter and have a vacancy. 

Hoping this move will help us save more money to put towards our next deal.I am still fairly new to this, but let me take a swing at your questions.1.