And are you positive that the basement doesn't take on water in wet weather?  

So, as larger numbers of students enroll, theres a lot of opportunity to increase efficiency and save on expenses.

Traditional Mortgage won't work on this house, unfortunately, as it needs a new roof and there had been some water damage in one room in the house, necessitating removal of drywall (it was caught quickly and there is no mold or mildew.

The building has many open violations, mostly due to the abandoned store fronts and to water leaking into tenants apartments from the roof. 

The only catch is the HOA is $260 a month plus $65 hazard insurance plus $200 cap for utilities water and lights, internet comes in HOA dues.

We like to put 6 feet of ice and water shield on our roofs instead of the typical 3 feet when we install a new roof for this reason.  

Any suggestion on water properties vs not on water?

That said, with the limited information you've given, there is still probably some meat on the bone.I can't do accurate math for you because a lot of it is very case by case, but major expenditures you should add in are vacancy, roof, HVAC, property management, and any concessions you give tenants such as free water, cable, yard maintenance, etc.

Not sit around and paint with water colors or join your local golf course, but then again, you can if you want. 

My efficiencies are my gains.