Please no politics here, just looking for guidance on what may happen based on your insights so I can manage my bsusiness. 

With a budget of $300K-$400K, you could potentially find single-family homes or small multi-units in those areas.I'd recommend researching rental demand near universities like Duke or NC State or even checking out neighborhoods with strong job growth near tech hubs.

Selling your share at fair market value could avoid gift tax but may trigger capital gains tax for you based on the sale price and your cost basis.In California, the transfer may also trigger a property tax reassessment under Proposition 13 unless a specific exemption applies.

Since you know what you need to buy it at and an average rehab cost, I would say $50-70k for a cosmetic flip, set the ARV based on the sample you choose and doing comps and ask them if they would invest in a deal similar to this. 

Is STR insurance different from home owner insurance?

Certainly one account for each LLC, (separate for security deposits based on your local rules)

The already-constructed home is one point on the base of the triangle, and the other plots comprise the rest.

The area has attracted a lot of new young professionals with their work from home marketing that gives $10,000 to qualified families to help them establish themselves in the area.

I would not eliminate OKÇ based on tornadoes, that is why you carry insurance.It will very difficult to find something in Austin that fits your budget.  

But if you can finance a home in an appreciating area make it breakeven and at some point (as always) either rents/nightly rates will increase, interest rates will go down, or both.