It will be interesting to see where our market goes, but I agree that it is a great time to capitalize on the appreciated values.

Repairs, capital and misc stuff is VERY lumpy. 

I'm happy about this part: "Incumbent in the sale of Fannie Mae’s non-performing loans are requirements that buyers of these loans pursue loss mitigation that is sustainable for the borrower." 

You're either going to incur credit card interest expense or a working capital bank line interest (and fees) for the use of less than $10k per year on average. 

If you switch to a long term investing and invest in actual assets, you may be better of with long term capital gains or even be able to use the 1031 exchange route to delay paying taxes on your property. 

Or will I get hit with capital gains?

Are you spending a lot more up front on a rehab or capital expenses that aren't listed here? 

Quick assumptions as you said you are a student:- You are low on capital and experience in real estate.- You are rich with time, ambition, and energy.** Focus on the latter. 

This is a way to structure your sale so that you get cash at closing and you can defer the capital gains tax and depreciation recapture for 30 years.

Find  a partner who has a wheelbarrow full of capital that you can plow into a deal  and show their funds as your ability to close ( assuming they are good with it.... ) Good luck .