Ethical ConsiderationsYour concern about ethics is valid and shows you’re approaching this with integrity.

Here is some info: SF STR FAQAssuming the info is up-to-date, it must be your permanent residence (you must live at the property for a minimum 275 days a year), you can rent unhosted a max of 90 nights a year, you need a business license, and you need to pay the city $925 for a STR certificate.

Did you find any additional help or learning concerning over-the-counter tax line investing for Texas?

If it’s a good idea make it permanent?

If they’re concerned about price, offer creative terms like seller financing or a higher price with favorable contingencies.

The problem is that you don't get an opportunity to do an inspection before you buy.If you buy pre-sale from the owner, you have arrears to bring current, getting the owner to move after you have solved their problem and taken the pressure off, along with the previously listed concerns.

That is my concern too.

Lastly, keep an open line of communication with your manager so they feel comfortable bringing up concerns or bigger repairs.

I am not very concerned with cash flow and am looking more towards appreciation and equity. 

It looks like a great idea on the surface but the numbers don't stack up from a risk/return point of view as far as I'm concerned (it could be different for you depending on your return expectations).