To be conservative, if you take this gross rent number and reduce it by 25%, as long as whatever is left over covers your PITI(A and PMI if applicable) payments, then the hit to your DTI would be zero. 

If contracted work costs $15K it reduces your top number to 80K and I would offer below that to begin.  

For your money/equity to earn it's keep you deduct $833 directly off the top of your monthly rental income before any other expenses for every 100K of equity in your property.

You will earn your 50%, and sometimes you should earn more depending on the project. 

You can contribute to an IRA from earning income only, and the annual limit on contributions is $5,500.

Whenever I hear people looking at marginal deals because their cash is in savings "earning nothing," I just want to shake my head. 

It's been on the market for 18 days and seller already reduced the price by 10k.

Reduce your scope and build up a relationship of trust (on both ends) with high quality candidates.Go to a lumber yard and talk to sales person and find out who they like the most (buys lot and pays on time)... 

It may make more sense to be a lender to other flippers or invest in rental properties - both of which create passive (non taxed) earning in an IRA.

Austin's desirability will not reduce over night.Talk to local investors who have more skin in the re and can give you sound advice.