Or maybe you have other solutions for this?

You have to explain it to the listing agent who doesn't get it, who then sends that to the seller, by telling them it's not that you have no money, but this is a right afforded to you based on your service to the country and you can also show proof of funds that you have money, but are choosing not to use it as a downpayment because you want to do reno with it.I would use your VA, that's what it's there for.

And if they use public funds the property has to remain affordable housing for THIRTY YEARS which is insane.

Do I buy as low as I can to afford mortgage with 0 down and use 300k for big bear or put a larger down on primary home.

I'm not saying they shouldn't, I just can't afford to leave that money on the table if I'm not making more than that somewhere else. 

Has anyone had a different experience with HOAs or has any solution to getting around this?

You can leave your vendors off but starting with the issues/solutions you have gathered would be quite valuable 

Is it the lack of state income tax, affordability, or something else? 

Urban areas like Austin and Dallas are appealing for growth potential and job markets, but the suburbs and smaller towns offer more unique opportunities (lower entry costs and a steady flow of families and retirees seeking affordability and space).

If you have the other income and can afford to keep rolling your RE profits and additional money into growing your RE empire for the long term then there is no rule saying that you shouldn't or can't do that.