Or are you concerned some might not process a wholesaled transaction for some reason?

There's enough from the proceeds in the 1031 to purchase 2 properties, but my wife is concerned that we're over-leveraging ourselves.So, I have 2 options.1 - purchase 1 additional rental property with all the proceeds from the 1031.2 - purchase 2 additional rental properties and split the proceeds from the 1031.I understand you may need more details, and depending on your questions, I'll be glad to answer. 

The other thing is your too concerned with CAP rates. 

I'm pretty sure they run many personal expenses through the business, but I'm most concerned about the top line.He wants $2 million for it

I’m concerned the market will drop and my equity position along with it.

The other concern is renting by the bed.

It should be your primary concern in doing the numbers. 

I would be very concerned if you engage him to be your professional!

Assess the convenience of any potential investment property by considering typical walks to class, libraries, or—if applicable to your town—a downtown area (think shops, restaurants, or bars).Don’t expect tenants to sign long-term leases.Considering that the majority of renters will be students, tenant turnover will be high—undergraduates especially tend to change housing year to year, meaning renters who are willing to sign a lease over one year will be few and far-between.Instead, encourage lease “pass-downs”.One main concern in real estate investing is vacancies—a valid concern, especially in a college town, where the rental off-season between semesters will deplete the prospective rental pool.

Assuming you sign a year lease with the tenant, both of these concerns can be set to rest with the lease.