A small multifamily property is a smart choice for a first investment—it offers a great balance of income potential and manageable scale for someone new to the space.Don’t worry about being ambitious; it’s clear you’ve done your homework, and you’re already ahead of the game by setting a clear goal.

Should it simply be one of two choices: deny application or accept application with ESA exemption even if the property qualifies for the FHA exemption?

While short-term rentals in areas like Kissimmee, Florida, can pay for themselves and offer lifestyle benefits, the ROI typically doesn’t match what I see from my traditional portfolio of long-term rentals in North Texas.That said, short-term rentals can still be a great choice, especially if you're drawn to the area and the opportunity to combine personal use with investment income.

., San Diego, and others)—making it feel like a “natural” choice for a regional traveller wanting to get away for a short weekend. 

Based on your description, Party 1 seems like the safer choice.

This choice can influence the best path for you.

For what you are trying to achieve you'll want to stick to the suburbs and a few choice neighborhoods on the West Side of the city.

Austin is a fantastic market, with its growing tech presence and vibrant culture, making it a great choice for your future career. 

@Jorge Vazquez we stopped doing signs over 10 years ago.We had a separate phone number on our signs, so were able to track traffic & applications from them.We were getting more & BETTER leads from our online ads then the signs - so an easy choice to stop using them (also time & money savings).

Good luck with either choice!