Would eventually like to do a major remodel and do only vacation rental instead of year round.

@Edward C.Northern suburbs seem to be doing well (Cedar Park, Round Rock), but given the amount of growth there coupled with low inventory it makes sense.  

Seems like great average daily rental cost and year round demand.

Austin Round Rock’s unemployment is at 3.19% for November according to the latest jobs data.

From there, we will use the equity in our primary to buy more after were more established.Use the full 800k to buy the primary, then when were settled, use home equity for rentals.House hacking isn't much of an option.FHA is possible though were on only one income for now.To round things off, I will be graduating in Feb with a BA in computer science and no debt.

I'm glad you've learned some tweaks to make the next round of this even better, but don't minimize the "win" that this one was, both for you, the buyer, AND the seller you served with the cash offer!

Using round numbers, let's say there would be $50k in capital gains taxes and the property was cash flowing $250/mo.

There were certainly factors that a round two would make us more successful, and we made money each month, but not the amount you hear about from others. 

I would also bill them for the second round of pest control. 

Figure $150/month for electric year round maybe more and $150/month for heating, and $100/month for internet.