It seems like the rate is typically about $1000 more than a regular long term rental, for a similar property. 

The Killeen market seemed to be topping out in rent growth and price appreciation so decided to cash out and buy an older 6-unit apartment.

This seemed strange so I looked at my other lists and found that generally, only 1-2/1000 is marked "do not mail".

I seem to have to go through TTS, which costs.

I would say look for a hard money lender actually - you won’t need to verify income or anything, they usually care most about the deal itself and this deal seems like it has great potential also when you’re starting out, it’s going to be difficult finding private money fast and they’re not going to trust you as much so their rate will be higher, hard money lenders at that point have the same rates as them!

It seems like FHA might be a good route to go if possible or conventional if your credit and down payment.

It seems like a really cool opportunity, so we'd love to participate.

The Killeen market seemed to be topping out in rent growth and price appreciation so decided to cash out and buy an older 6-unit apartments.

I was there last week and see the city seems to be getting aggressive tearing down some of the old houses and getting the lots cleaned up. 

I haven't found any guidance from the IRS that says that Schedule E can or can't be used for rental income from a property you don't own, but the Schedule E instructions and related guidance all seems to be based on the assumption that you own the property.