If it does perform exceptionally well, the excess profits should be shared with the owner, just like in a traditional property management contract where the PM gets a % of the rents they collect. 

I've been looking at off market properties in Austin TX and the surrounding areas and have seen that due to the high demand so to speak in this area the prices for a BRRRR property would mostly be around $300K or more, with the exception that I've seen a few properties in the low $200Ks.

There are several STR's on AiR B&B that do not abide this; are they likely operating outside of permits or does the county make exceptions?

Picking this one back up: Dallas has restricted most short term rentals except for in certain areas as of this past summer. 

I have a laundry room that is exactly the scenario that you describe except the water is already split across the 2 units.  

I have a similar story except I have focused on SFR.  

Give the cost of money these days is around 7%, it would definitely be nice to have a paid off rental.Like Tim said, the 7% is largely irrelevant because your tenants are paying it with the exception of vacancy periods. 

It has a typical unfinished basement with a concrete floor and there shouldn't be any reason to go down there except to do your laundry. 

Ugly truth is the vast majority of agents out there have no knowledge, conceptual knowledge, or exceptionally limited knowledge in this regard.  

They put new hardwoods throughout the house except in the 2 bedrooms which has new carpet.