In case the color/style gets discontinued.And do you keep the extra at the property?

Finding an affordable one will be a challenge but so is finding a suitable SFH for 350k.  

if you used the $40k a year as a down payment and you have sufficient credit and suitable market, you could say buy one property a year. 

By having the refinance/Return of Capital event in the same year as the first Distributable Cash, it should make no difference if this is European or American style waterfall.Let's look at this from two perspectives.

We both came in with 665 and 680 and have 10% available.At this point we are out $1000 on non-refundable services, possibly will be out of the earnest money, will be out of $2300 more for the lease termination at the apartment which we also will need to move out since it has been rented anticipating our exit in May.Overall this seems extremely deceptive to explain minimum requirement prior to applying (would never have applied if we didn’t qualify), being approved, only to be bait and switch style roped into paying money we do not have to move in or essentially choose to be homeless (obviously we would just rent another place but it’s an extremely short notice move and apartments aren’t that plentiful)Any advice on where to go from here?

Both styles of financing do require usually 20-30% down, unless you bond well with your seller, and they prefer you put 0% down...

I've already started a small list of fellow investors and am possibly looking to create some meet ups at a time more suitable for myself. 

Is it important to have professional realtor style headshots? 

I agree with @James Carlson that the part of town that will be best suited for the style of home you are looking for is likely in Northglenn, but I'd also add in southern/western Aurora - which would be much better for both of y'alls commutes. 

The most common portfolio style loan in Texas is a 20 year adjustable rate loan.