Go through the tax local tax records and call / mail owners of multifamilies you've seen around town but aren't on the market.  

2) Is this allowable without forfeiting any privileges (BAH, per diem, etc.) or changing my home of record?

Our mortgage broker of course does not recommend this route but has hinted off the record that this might be the best option for us.Have any of you done this before and how did it go?

I know some BPers hate that rule but it has worked for me in my market where I've exceeded the 2% rule (my record at purchase is 3.68%).

Many landlords don't know how to maintain properties, don't know how to do the record keeping and they hate their tenants with a passion.

Being a first time investor, I don't have a track record so hard money is pretty expensive, which also gets factored into purchase costs and makes finding a deal in this market all that much more difficult. 

As we are seeing a record increase in housing prices this year, the gold adjusted housing price actually is very low, at a historically low level.The minimum was reached in 2011, and from 2011 to now, there was not much increase. 

He has records of rent payments for all the units that I will verify when under contract.

:)The fee is $300 to have a corrected violation cleared from the record.

You might be saving $308.10 (the Texas LLC filing fee) but spending a lot more on management and record keeping.