By switching up the type of marketing piece you will appeal to more people on the list and potentially receive more responses.As for which direct mail company that would work best, I like what @Curt Davis suggested. :-)

Think about ways you can make the unit more appealing/increase the rent.  

But ~$100k probably would not get you something that is going to close enough to the campus to appeal to students.  

It doesn't have as much curb appeal as my first one but it should rent  around the $700 to $800 range.

Good to read study learn strategies, see what appeals to you, then committee to one try it see if you you can make money, see if you like it, if you don't try a different one, if you do focus, push and become the local expert in it.

Question 2 is should we paint the wood paneling and remove the drop ceiling just to give it some appeal before selling?

Text/Email/Call me if these kinds of numbers appeal to you."

This model is appealing to part time agents.

Building tons of cheap homes here will make (some) developers rich, but at a cost to the overall market and appeal that brings people to the area.

If you don't want to mess with the less than appealing lending options this may be a good way to bridge the gap until you have enough "IRA cash" to buy on your own.