I've put in a offer on one single family but if that doesn't work out I'm also considering a condo/townhouse that is near a local University. 

Unfortunately the boat is now  tuition at "FU" (wait... when it's university it's UF) :)

Universal denied the claim.We filed suit against them.Now we cannot find new insurance at all, so lender FORCED their insurance at $3200 per year.Do you know of ANY insurance company that MIGHT insure us with the pending lawsuit? 

I have not looked specifically at which property you are referring to - but if you are referring to Crestview Dr by Jordan Lane and University Drive...that's a rough area by Huntsville standards that you won't be able to really appreciate simply driving by it. 

Renting out rooms likely only appeal's to college students or maybe even recent grads which dictates the area that makes the most sense to buy in (near universities).

The house is located at 850m from the University, but it is located 1.5hours from my city.

I have a 17 unit (41 bedroom) deal that is half-way funded, 1 block from a university with 25,000 students.

If your group is larger than this, then you start wandering into the regulatory realm and need to be concerned with accreditation of investors and such matters. 

While SEC's definition of sophisticated investor is pretty vague, you have to make the best of it "...All non-accredited investors, either alone or with a purchaser representative, must be sophisticated—that is, they must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment..." 

It does not apply universally to every individual and unique set of circumstances.