So it's just personal preference and budget for a host.

With $50K and a DSCR loan, your budget will likely cap at properties in the $150K-$170K range, depending on the closing costs and any repairs needed.

Not 'innovative' but definitely 'entertaining.'

However, depending on your budget and ambition, there's opportunity everywhere! 

I also wouldn't touch hilltop with a 10' pole. struggled. old homes, over budget renovations, lots of issues. realtors push people here since it's the only place cheap houses close to downtown can be good but homes are 1900-1920.

It sounds like the Seller does not want to commit until he knows the deal will go through, and until that time, he wants to be able to entertain other offers. 

I would not eliminate OKÇ based on tornadoes, that is why you carry insurance.It will very difficult to find something in Austin that fits your budget.  

Make sure you budget for the negative year.

To start your journey, I recommend focusing on building your network by joining meetups and engaging in online forums, while narrowing down your first investment based on your budget, market, and goals.

Where you pick will depend on your goals for cash flow and your budget to buy.