Found a property for 32k in an area where there is high demand to rent could charge 1800 a month for a 3 bedroom.

Now, down at those temperatures, your COP will be approaching 1.Here where we have cold winters, code requires an ancillary heat source - electric baseboard heaters are most commonly used - to supplement the heat pump in the dead of winter (we frequently get 2-3 weeks where temperatures are below -20C).In a warmer climates, even if code requires you to put in ancillary heat, you should never have to use it.

Rentals in the area are charging about 1000-1400 per bed room (I like to relate price to bed since student rentals here kind of revolve around that Idea and seems to be a significant factor.....how much does Mom and Dad need to pay to keep Johnny UCSD student Housed. 

Some may work especially if you can buy at $40K with financing and charge a rent of $800 but vacancies will be a issue.

The actual maintenance expenses will also be split 50/50, but I will not charge any fees for labor if I handle things myself. 

As JR said, I would do it for free this time and then charge a fee the next time it happens!

I'm looking into Bank of America as they don't charge annual fees, origination fees,and you you can lock a portion of the balance into a fixed rate if you want.

For the deal to work I would need them to reduce the payoff by roughly 5k on a 40k payoff, the 40k includes all the crazy fees the bank charges when a loan goes into default.

The lease charges the tenent a trip charge if no one can get in for a scheduled repair...$75 or whatever.

Once you complete the final application, we charge a one-time servicing fee of 3% of the requested financing amount before transferring the funds.In addition to the servicing fees, you are also responsible for the title/escrow charges and home appraisal fees.