The previous answers covered the topic very well.
Just wanted to add to what BizResearcher said about pursuing other
opportunities. Sounds like the demand is there, how about starting a real
estate company where you can manage the properties for other people or even
find properties for students.
You could set up a local website for students who want to share rooms and
flats together. There are lots of opportunities other than just plain
renting.

A very good summerized points. About 7th point, I think initially we do have
to face some obstabcles but once this phase is passed we have to try to move
towards perfection whther it is possible or not.

I think responding to this post is a good opportunity to dismiss a couple of
misconceptions that people have about how the SBA works.

1) You mentioned that you can't go the "bank route", well as mentioned by the
moderator already you are going to have to go "the bank route" or at least
through a non-bank lender if you want an SBA loan. Most of what the SBA does
is guarantee loans, your request still has to be underwritten, structured,
and approved by an independent lender.

2) Passive Businesses are not eligible for SBA financing. Apartment buildings
or rental houses are the definition of a passive business and it is therefore
ineligible.

My suggestions are: Work on your credit, and see if you can qualify for
financing from a local community bank or credit union.

If you have bad credit I would start by setting up your own comapny with it's
own identity and go from there.

SBA guarantees bank loans; they do not issue loans. I doubt you would be able to secure an SBA loan to purchase rental property. Rather, you would get a mortgage on the property you want to purchase and that will require a really good credit history. Have you considered taking advantage of this market in another way, such as starting a business to do maintenance or cleaning of rental properties?