BUT...What prevents a third party from making their own (fraudulent) Operating Agreement in my LLC's name, claiming that it is the owner of my LLC, and selling my property?

If it was done to avoid the primary occupant condition it could be considered fraudulent. 8)

You never heard me say I would do anything fraudulent either.

For the purposes of the forum I was still referring to it as a "flip", but I'm really just concerned with how much I will make in resale in the same way any other homeowner would; I simply don't think it's a wise choice to purchase a property and spend money to fix it when I know I would never be able to get it back.I apologize for the confusion, and I'm now certainly embarassed that it has appeared I was trying to be an investor who would fraudulantly "pose" as an Owner-Occupant; this would NOT be the case at all, I simply have never lived in or looked at a house that needs a lot of repair, and I am trying to figure out if it is a smart purchase.

How do you plan to combat those issues, will you expand your network, move to a new location, expand your marketing, or some other innovative strategy?

There are typically severe penalties for a contractor filing fraudulent liens also. 

For those veterans of Central Texas real estate, my question centers on the topic : how to combat both the over-valuation of Austin-area properties and saturation of "weekend warrior" investors who simply overpay for distressed homes.Obviously, we are working in a market with high-demand -- due to the 100+ new residents we gain on a daily basis -- and short-supply.

Unfortunately I don't have enough experience to give any really meaningful advice on how to combat the problem. 

From what I have read online it would seem that the SEC was formed largely in the wake of the 1929 stock market crash for the purpose of safeguarding the public against fraudulent stock issuances, stock market manipulations, and the like.

They don't only know the landlord/tenant rules better than the average layman, they also know the general rules related to Bankruptcy, Creditor's Rights, Estate Planning, Fraudulent Conveyance, and any number of other ancillary practice areas that touch on landlord/tenant.