Also see public records to obtain the starting mortgage, and the remaining balance, that will be the price the bank excepts. 

Moreover, inflation and appreciation are working in your favor.

Don't use your student loans to inflate your lifestyle...Continue to live like a college student even after you graduate - have roommates, cook your own meals, buy used reliable stuff only when you really need it.

The owner asks for $5,000 down and a 7% interest rate on the remaining $95,000 amortized over 30 years for a monthly payment of $632.03.

Because the FHA loan is assumable I am offering seller financing to cover the remaining balance of the purchase price less the loan balance.I'm wondering how I handle seller financing.

I am using the 50% for expense rule, after that and paying the mortgage from the remaining 50% I want at least $250 to manage a door/unit.  

.$500 for 1,000 stamps$200 for 1,000 names/address from Listsource$25 for 2 X 12 packs of yellow pads. 50 pages per pad from OfficeDepot$30 for 1000 envelopes from OfficeDepot$12 for Pilot G-2 pens from OfficeDepotThis is only $787, keep the remaining $223 in a bank account for right now.Send out 25 yellow letters a day, everyday, for one month.  

Rent will increase with inflation, but his payment stays the same.

That being said I think the market's inflated right now for buying to hold.  

They will not pass an appraisal if they are inflated like that.