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Additionally, regarding the legal structure, an LLC seems to be the most suitable option for our situation.

Some, like ours, focus on offering optional services such as renters insurance or washer/dryer rentals without requiring tenants to opt into a full package.When choosing a property manager, I recommend asking about the structure and purpose of any fees.

Another option could be a home equity line of credit (HELOC) if you have enough equity in your primary or second home.

Focus on neighborhoods near employers or schools, and explore slightly outside Austin for more affordable options. 

At least you have the option of saying yes or no before it is sold. 

(Auctions and foreclosures can also provide great leads.)With $20K, hard money loans are a practical option, as they emphasize a property’s ARV over your financial history.

Offer aid and housing options if you're able -- don't try to profit. 

The original post leaves the door open for a challenge by the IRS, so the safe harbor of holding it for investment for two full years is the safer option.  

Exploring alternative options, I inquired about a property that was listed for rent.