San Antonio is a great market for buy and hold.

It's not in a neighborhood that I would invest in for a rental and the market doesn't look that great for a flip. 

Bump them up close to market rate, but consider keeping it 5-10% below market as an incentive for them staying. 

Unless your market has special rules, the eviction process is the same.

Is this a market better suited for single family LTR or mulitfamily?

Layer on better quality tenants and there are a lot of missed opportunities focusing on metrics that present favorably on a spreadsheet in the lower tier markets. 

Can I also charge him rent till I find a suitable tenant ( I intend to aggressively market the unit)?

For our clients, we separate repairs into catergories: 1) Health & Saftey - highest priority to avoid lawsuits2) Property Preservation - don't want a $500 water leak repair to become a $5k repair later3) Government Required - for city & S8 inspections4) Marketing Negative Impact - who wants to rent a "purple" house?

My markets are North ATL, Greenville, SC & Spartanburg, SC. 

We also try to note everything wrong that is readily visible and then categorize each issue as:1) Health & Safety2) Property Preservation3) Marketing Negative Impact4) MiscellaneousThis can help owners make better decisions on which repairs to prioritize, especially if they have a limited budget.