Purchase price: $160,000 Cash invested: $45,000 My parents my wife and I own the property next to this one.

As you need to be a licensed foreclosure consultant to buy pre foreclosure properties. 

Despite the house being operated for years by the prior owner as a STR. 

If there profitability is maximized by STR owners obtaining an ROI of 20%, that's what they'll allow.  

As a real estate agent, I work with a lot of investors and home owners in the south shore excited about this and looking to take advantage of it. 

There is no mortgage on the property.   

I am owner occupying this unit so I didn't know if there was a problem with putting property in LLC.

I was the Listing agent and sold the property in 3 days.

This is in the east side of Buda in 78610Property price is around 340,000 and the monthly payment for 80% mortgage at 7.125% with property taxes (2.32%), HOA and Insurance comes out to around 2,600$Rental comps suggest around 2200$ gross monthly rent. 

I don't see you getting a huge amount of cash out of this property with a new loan, anyway.