The FHA 203K is not for everyone and has extra steps. 

This is roughly: Phase 1 includes education on house hacking and small multifamily investing, creating a basic network, and saving any extra cash.Phase 2 is my initial searching and closes with a contract, estimates for renovations and completion and revaluation of the property.Phase 3 is the actual year of living at the property while saving cash flow up to then later pick up a second property.Phase 4 is freeing up the original multifamily for full renting, and securing a second property to repeat the process and gain capitalPhase 5 is securing a mid-size multifamily complex either with capital on selling one of the two first properties or with saved up equity. 

I would just get extra liability coverage on them and keep them in your personal name.

If you feel more comfortable or confident with an experienced manager and don't mind paying the extra fee, I don't see why not. 

They don’t get to keep any extra money. 

Maybe even make some extra income mentoring the engineering students that are likely to be staying in there.

An excel mortgage calculator with some nice features (extra payments, interest-only, etc.)All of them are freely accessible on this page: https://www.biggerpockets.com/...

That would be cheaper than a 20k bill that I have now.. so yeah I would actually pay extra for them to secure and keep an eye on a property after throwing out a disgruntled tenant. 

New equipment would be extra.

Many investment properties do not cash flow when 100% financed.I am not trying to talk you out of doing this, but make sure you invest that $70K wisely, so it isn't just an extra monthly burden.