Although the Killeen area is much more affordable than the Austin area, prices are still a bit high for cash flow purposes on typical SFR homes.

The cost is higher and there are typically more exclusions on those Excess Lines policies. 

Also, what's your suggestion on closing schedule for multi family apartment typically?

I posted about this experience recently: https://www.biggerpockets.com/blogs/8160/71180-we-...With a master metered property, you have a few options: (1) you become responsible for the water bill and include a flat fee in the rent (2) sub-meter the property so each unit is on their own meter, making the tenant responsible (typically VERY expensive) or (3) implement Ratio Utility Billing System (RUBS), this is where you are still responsible fo the water bill but through a formula and spreadsheet bill back the tenants their fair share.

Also, with Section 8 tenants we typically see higher R&M.

Yes Robyn - we have access to this category in Florida - and they are typically 'off-market' deals... we can narrow parameters once we get to know each other better (matching goals to available properties, and creating a strategy.)

Is there any major drawback to an FHA loan as opposed to a typical 30 yr mortgage besides a higher interest rate?

They also wanted to make sure there was enough liquidity to run the rehab, as typically you have to pay for the rehab up front, and then will get reimbursed from the HML on a "draw schedule".Welcome to BP!

Bay properties typically stagnate but do not retreat very far. 

In my area, they typically don't care, so long as you have the required down + closing costs + reserve requirements, if any?