I don't understand if I count since I'm living in the property or if it's only the tenants that count towards the limit of individuals that are unrelated living together.

Quote from @Sam Evrard: How do you go about finding areas to invest in with limited capital? 

Your best/safest bet would be a regular lease combined with an option to purchase.

Usually its a safer bet.

If you are self-employed with no full-time employees you may wish to consider opening a Solo 401k instead of a self-directed IRA as it has several advantages over an IRA LLC such as much higher contribution limits, direct checkbook control (i.e. no need to have the account at a speciality trust company), ability to take a 401k loan, exclusion from unrelated debt finance income tax with respect to investment in real estate acquired with non-recourse financing, etc.Can I contribute to both a Solo 401k and SDIRA?

If you have deep pockets, I think Austin will eventually reward you, but if you are a newbie in real estate looking to cash flow positive day one or shortly thereafter, Austin is probably not your best bet in TEXAS.  

Additionally, his credit is not the best, and he has limited funds for a down payment.Any potential options or solutions that may be available?

Quote from @Andrea Russin: A blanket loan would be a good way to spread the equity however it would limit your ability to easily exit one property without restructuring your loan.

@Steven Rosenfeld On Goodegg, no direct interaction here; they seem to maybe have limited full cycle experience in the GP/syndicator role. 

That’s the best bet.