Uninhabitable by owner

Hi,

I'm a young investor looking for my second purchase. During my research i've been finding copious amounts of adverts for apartments that are 'uninhabitable by owner'. The purchase price tends to be much less than comparable properties while the rental income tends to be the same. I've googled for info on these and have found nothing.

My guess is: they are serviced apartments that are rented out on a daily basis, with the body corporate/hotel company/whoever paying the investor a small percentage of this income as a weekly 'rent', so they make a lump sum profit by selling it while maintaing cash flow from renting it out, am i close? My instincts say to stay away from these investments (the same instinct that would tell me to stay away from a managed fund). However, there is also these student housing apartments that 'appear' to be more of a genuine investment option.

One of the better deals i have seen is a 1 year old, 2 bed apartment for student accomodation, advertised at $295k and currently returning $400 p/week. With interest rates dropping this has CF+ potential. This seems like a good deal on the surface but is there anything i should be aware of regarding these types of 'investment only' purchases? (Besides not being able to live there myself). For example, is capital growth poor compared to 'regular' apartments? Will i have trouble selling it in the future? etc etc.. Also, is it unihabitable for a fixed term or indefinately? What sort of questions can/should i be asking the agent about this?  

Thanks in advance,
Sam