Because they perceive risk.

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.  

The biggest win seems to be the fact that investors will be able to buy existing STR's and carry on with the business.

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).

You should ask to speak to the commercial lender at the bank that carries your property's current mortgage.

No syndication experience but there are about a dozen quality RV/Mobile home parks on market in Oregon, several with owner carry options that can be passiv-ish with management in place.

But any depreciation amount beyond that can be carried over to future years. 

The agent says that conservatively I could bump it up to $1600-1800, with it being at $1400 would you say I should try to increase it to $1500 for next year and steadily increase it from there or make the bigger jump straight to $1600+ and risk losing the tenant?

.: Cost of risk scenario. 

I usually require my tenants to carry renter’s insurance with at least $100,000 in liability coverage.