The growth in San Antonio is moving north and the builder incentives will benefit a new investor like yourself.

I wouldn't suggest you buy a single-family home to live in because the additional cost outweighs the benefits.

If there's a family member or friend in a similar situation, and you can both align on the initial plan (location, home type, price, usage/occupancy, etc) you can pretty easily get a co-ownership agreement in place and even a joint mortgage.The benefit here is it might open up your ability to buy a larger place in a nicer area which could lead to a faster rate of appreciation and overall better living environment. 

I want to spread out whatever “wealth” we have into other properties that could potentially benefit us.

Getting the federal return correct is the most important and with owning two properties, there could be some positive tax benefits.

And the passive loss rules may prevent you from getting a tax benefit if your rental deductions are more than your rental income for all of these options.David OrrTax Modern

Realistically, there should be no benefit, and there are probably some disadvantages, of doing what you propose.

It will familiarize you with the basic terminology and benefits.

You’re already getting the tax benefit, so I wouldn’t feel the need to roll the gains into more real estate.

Expensive markets are often desirable because many people want to live there, driving up demand and prices.Reno, NV, for instance, is a market that benefits from diversified employment sectors, including tech manufacturing, hospitality, and recreation.