Just off the cuff that sounds like Crafton, Dormont, Castle Shannon, Garfield, Sharpsburg type areas with an ARV in the $120k-$170 range and bought at an appropriate discount.

In bulk you can get the labor and sometimes material discounts.  

The purchase price is the current list price which I would offer at a discount.

Buying this at a 15-20% discount to market value, and bringing in 33,600 a year in rents on a 205K Purchsae seems good to me.

If you're going to buy and hold, however, I'd go with the cash out refi and lock in discounted rates on 30 year notes (your home and your new rental).If you're going to flip or BRRR use your LOC to secure the property, fix it up, and then take out a new long 30 year on the new property.

In realty the seller does not save any money because the buyer is expecting a 6% discount because they know the seller doesn't have to pay commission.

After some research I found that they were the last 2 properties belonging to an landlord, and offered to buy both at a discount.

Put an offer on it, and managed to get a discount from seller.

The law doesn't allow the college to open the property to the public but they may be able to lease it to my company with a Master lease and then I could open it to the public with priority going to college students and faculty at discounted rates.

Most agents will prepare documents for you at discounted fee.