I already started shopping in case a change became necessary and also noticed that Allstate was higher (though it included the smaller claim on the house currently with SF).

Annual additional expenses run about $1000 per year, to include insurance, maintenance, etc.

You must include a clause in the lease allowing cancellation if the owner redeems.

Shouldn't the contractor include a contingency amount within his/her fixed price quote?

Which means it needs a lot of repairs, maybe as much as $30k or more, including new roof at maybe 10k.

Considering the small numbers of the units and that ALL utilities are on 1 meter You should consider adding the cots t the rent and just leasing it at $xyz include utilities. 

What real return (including all recurring costs and not including unrealized gain like principal pay down, etc.) can you expect with 25% down, 30 year fixed?

@Art MaydanFirstly, if this is a student rental, I would recommend that you have the parents be guarantors and sign a separate guarantee which references the lease {i posted a sample in the BP file space a few years ago}.If the parents are signatories to the lease, then they have all the rights of a tenant including the right of access.  

Often I have seen out of state Investors enlist the assistance of a real estate professional who knows the area and properties and can offer their expert advice including videos pointing out both positives and negative but again not without having an inspection contingency as part of the agreement. 

Well now the only thing holding this up from closing seems the underwriter is now requesting the exact payoff amount including late fees and interest.