@Primrose NyahwaiWell, if you are about to be a CPA, I suppose you should already know enough about LLC's, but here is one thread you might find useful:https://www.biggerpockets.com/...It sounds like you are investing with non-spousal partners so you will need the LLC. 

Or were the number of non-paying tenants simply exaggerated so states could get their hands on more money?

Treasury recently announced they are capping the non owner loans in the government coffers to 7%; both Fannie and Freddie have about 19%.

Fannie and Freddie aren't purchasing non owner, well they said they want their portfolios to only be 7% non owner and right now they are around 19%- therefore some lenders limit what they want to hold.

Did a lot of landlords give up and sell, or change to non-student housing?

Basically, non of the major components. 

Bevy of options - Non Performing vs PerformingWith Real Estate, you have several options.

Also added back are personal expenses paid by the company - health and life insurance, 401K, that "business meeting" you had in Hawaii, non-working family members on the payroll, etc.These combine to create a number called SDE, or Seller's Discretionary Earnings. 

The calculation is the same as if you paid cash....selling price (less actual selling costs) minus purchase price (deducting some initial closing costs and non expenses capital improvements).

We felt like we had more control over non-payment.