Preferably Dallas or Austin.And a more general question would be what tips or suggestions do you have for keeping closing costs under control?

Vacation Rental is my preference, much more work than long-term but much faster reaction time to market changesAnd to be honest, not all THAT time consuming, you may actually learn that you love doing it yourself from afar. 

And one more question is there any preference between Post cards and yellow letter?

Im not a fan of white kitchens but this is personal preference.  

My preference would be to buy performing notes serviced by FCI and to never have to foreclose. 

You might burn some human capital (like, frustrate your broker/banker/lawyer or the other side) if you go under contract then find something you don't like and don't buy... but obvious I'd prefer to do that than to buying a house with expensive or difficult issues.I know from experience that FHA loans for 3+ family homes can be a little challenging (they have to meet a "self sufficiency" test, where the rents for the units have to substantiate the carrying cost of the property).

That said, if I didn't prefer to work a full-time job and invest on the side, and was willing to put in the time needed to make large amounts of leverage less risky, I'd definitely consider taking the cash out and leveraging up on the next one!

It would result in a better answer for tax purposes since you'll have lower taxable income but would investors prefer to have a higher NOI number instead?

My clients typically prefer a new year's lease or longer, especially to include any increase in rent, and to bring the end-date into the late-spring, early-summer months.

I prefer a 3 br single family house.