Co-living I like a bit more because you have less money needed for furnishing a property and CO laws allow it in the major cities unlike STRs.

I’d stick to Franklin, Clayton, Westminster, hayesville, Bryson city

Hi Lina -- I'm based in Dallas but wouldn't know the laws for the city and county of Kyle, Texas.

While 2/2s are better 3/1 are more desirable because of the heavy section market in the city. 

Stick built homes on city lots are going to be expensive. 

What I'm trying to say is that going up to 1.5-2 hours outside of even the biggest cities, there are pockets of affordable towns/cities with at least positive cash flow (although its never been harder to find than right now, I've been waiting for 3 years for the market to make sense before buying again). 

The City seems open to it as long as the contracts are structured the right way.

Refer to your state, city and county resources for any required items, or recommended inspections. 

An analysis of the data also shows that the city north of Austin grew 10.6% year-over-year, making it the fastest-growing city of at least 50,000 people.

The only solution I see is connecting them to city sewer which won't work 95% of the time.