In 2008 I had gone broke going to school out of state and getting a collection on my credit score, it suddenly became very difficult to get loans to go to school (keep in mind, I had no support from my parents and was living on my own).

In 5-10 years when millennials start making families, there will be even higher demand for good homes in good school districts.- 25K in cash from your equity does not give you enough 20% downpayment to buy anything better as a rental around here

I wonder if there is a school there.

Good look to you and kudos on think about this before even graduating from college!  

Pay attention to what school districts are selling quickly, how much rehabbed houses are going for, how much houses that need work are good for, ectAlso spend time going to open houses to get an idea for what the market is like.  

Hoping to get a job in property when I graduate, or engineering as it could pay more.

yes, there were two multi-family buildings in Berkeley near the school for $1 each (might still be there), but I think the deadline expired to sell them. part of the deal was that they would HAVE to be relocated within Berkeley, and Berkeley just doesn't have those types of lots available.

It's important to me that we purchase in a school district that I'd be willing to send my own kids.

I started my real estate curiosity by taking a real estate sales person and appraisal course through Allied Business School and realized I didn't want to be a sales person but rather an investor. 

Buy in the best part of town or school district, and maybe the appreciation will take care of your desire to hit a home run.