Ideally, I would like to buy a 2-4 unit, but I'm not closed off to a single family and renting out the rooms.Any advice would be greatly appreciated!

Investment bankers are usually looking to lend to a LLC vs an individual.

Also, before you buy another property you'll want to determine your ideal next property - meaning, will it be a "rent ready" house, a major renovation project, or somewhere in between.

I would make sure a bundle of rights for ownership are available individually, per unit of course, then worry about warranty and purchase options.

.- The variety of financing products available as individual tenant in common loans remains limited, and the terms are generally less favorable than either apartment building loans or condominium loans.

And you now have to file three tax returns:- partnership tax return- your individual tax return reporting 1/2 of the partnership losses- your partner's individual tax return reporting their 1/2 of the partnership lossesAnd while partnership return can be DIY-ed, it probably should not be.

So they would have to have the cash for the downpayment to begin with.)If they get 5 individual loans this is EZ Peasey.

Honestly if you are doing STR I would suggest doing Austin itself rather than all the way out there in Kyle - maybe a couple of years ago when the prices were through the roof in Austin city itself this would be a good alternative but there is a blip right now where you can get a god entry point in Austin (downtown/east ideally) for STR

That type of property is ideal. 

The low purchase price, combined with an established market demand, made this an ideal transaction for a fast turnaround and profitable outcome.