Because you're paying the loan back with devalued dollars, and inflation adjusted income while expenses are fixed. 

I am looking at a 7 bed 3 bath townhouse that is currently being used for student housing near a prominent university.

Depreciation, cash flow, and loan pay down.

The 10% down second home loans are much more difficult to get now.You will likely need a 20% down investment property loan.Yes you can do a cost seg study for this property.I'd be more wary about finding a property that can cash flow and be allowed as a STR than tax breaks.

I discovered a guideline that prevents lenders to loan to Condos that have master homeowner's deductible > 5%. 

Due to the rising cost of financing, the deal fetched an 8% cap rate, typical for transactions in this size range.As we move through the first quarter of 2024, the $180 billion in retail loans maturing between 2024 and 2026 presents a significant consideration for the market.

During that period, the number of closings fell for seven consecutive quarters before rebounding 74% over the ensuing two years.Additionally, the $24 billion in maturing CMBS loans this year could stimulate sales activity as the interest rate environment will likely be much different from their rates at origination.

It's a math problem more than a qualification problem, but you may want to cap your loan amount to get a better rate (and cash flow) vs maxing out and having a little more cash, but really bad cash flow.

If there is a loan involved, you must have the mortgage companies' permission to transfer ownership.

You know the seller's asking price and loan terms (is it interest only or amortizing?).