Overall I am trying to understand what might be some drawbacks of going solar.

Cost seg works for large investments that can use the immediate write offs and who can afford the high cost of getting the report. 1031s are useful if you have a lot of appreciation in a fully depreciated asset and want the ability to roll the entire sale price over into a new asset...yes there are draw backs and one needs to weigh the pros and cons. 

@Katie Panzica, owner financing would probably be your best bet, but has some drawbacks.  20% down or more, higher interest rate & the property MIGHT be over-priced.If that is not an option, have you tried to see if you have like-minded ppl in your family that would consider a joint venture?

The only draw back was I am not able to close on the same day. 

Do you think Private Money could also be an option or would this have the same drawbacks as conventional lending. 

As someone who has utilized a portion of my retirement money for investment properties I can attest that it has both benefits and drawbacks.

BRRRR real estate investments do come with drawbacks, probably the greatest of which is that your investment is relying on a future value.

The drawback is that I'm an hour away from that area (i live in Hutto) and I'm not too familiar with that market.Option B: Turn my current primary home into a rental and buy my new home in the appreciating Austin market: Now this is the idea I've recently been giving much more thought.

Is there a drawback of structuring it this way? 

So the 1yr requirement shouldn't be an issue.You mentioned renting to other LT's, which has its perks, but it also has some drawbacks.