All freshmen at WashU have to stay on the dorms for the first year, but after my first year my plan was to move off campus and put 3.5% down on small multifamily (2-4 units) and rent it out to the other students.

Before I put a offer in I looked to see if there were any open permits, there were none.

Unless you are living in it, you will have to put 20% down. 

So, I thought I should sell, take the profits and put into high interest account, rent a room for myself for about $1100 per month with all utilities included and that way I can save additional funds for a year.

I have clients who are more sophisticated and have some value of lot splits, surveys, etc but even when they bought it and split it off they don't really give much value to that. you have to put the power in you hands and negotiate with lenders.

I do understand there is risk with finding a good network out of state of contractors and property managers. 

If so, they can't offer 1/2 a month of rent to other agents, so no point in putting it on the MLS.Several of our Detroit market competitors play the same game on cheap owners.

I would make sure you know what that $ is at the moment and the potential DOM risk before making the decision to keep it vacant chasing a price you can't get. 

From looking at a lot of areas like San Francisco to qualify for a DSCR loan you would have to put down a 50% or more down payment. 

However, you may be charged for a title search, but it does not bind you to doing business with them or that lender.When you buy bread, if you don't like what is being offered at one store, you can put the loaf back on the shelf and go to another store.