I have picked up a curiosity and even passion for short-term rentals and hope to own my own STR property in the area of the University I am attending. 

I would then plan to use this forced equity (since I plan to buy a fixer upper) to invest in another home.I have been constantly reading to househack right into the MFH, but this may take some time for me to acquire the money and purchasing power.

Many investors (probably the majority) lose a ton of money early on because they never learn how to manage their rentals.

But you are effectively putting yourself into more debtThere is good debt, and bad debtStudent loans are IMO bad debt - yes you get a degree that gives you a good paying job, but it costs you money every month to hold that debtReal Estate debt if used properly can be good debt.

I am a private money lender. 

My goal is to get my Mortgage payment below $490 with less of my money involved in a DP. 

Now as a Banker I understand you will have a shorter pay off but you also have to take into consideration market declines.If the market declines in any way or if your area suddenly gets hit with a higher than normal foreclosure/short sale values can drop.

You do seem to be a little short on storage space.

Anyways the only way I will get my money from my tenant is if rental assistance is approved tenants is 4 months behind. 

If for some reason you need to rely on regular adverse possession instead of tax sale short statute of limitations, it requires ten years of possession after color of title.