Either one would be far cheaper then your current option. 

Many investors do not want to tie up their personal home in an investment property however this may be the cheaper and wiser decision depending on your situation.

I'm thinking worst case scenario, I don't rent it out to anyone, my holding costs go down to around $1200-$1300 if I don't save for any repairs/cap ex and utilties much lower, and then each tenant I put in would just make it much cheaper for me to live for free! 

With that you can arrive at a price, but it's probably cheaper to pay an appraiser.

But for me its bye bye texas... not to return.. much easier places for us to work. aNd cheaper  those property tax's are just killer. along with all the foundation issues Mold water intrusion..

Boom, 203k it.You've got an edge on the hard money flippers in these scenarios: your financing is substantively cheaper than their hard money.

These are worth 10 times what you paid for the Fortune seminar and much cheaper! 

Usually cheaper houses are better for rental income. and new houses are either to live or to sell

In house is cheaper but takes a lot of time to put together so depending on what value you put on your time- may be worth having a third party do it. 

We were part of a club  that built outside Sugarbush a number of years ago and the final analysis was the prefab was cheaper then stick built.