Two different banks, four different closing companies (because three of the sellers wanted to solely use their own companies). 

Seller financing hasn't worked, but seller came off price to $100k (was $125k). 930 sq ft 2br 1ba raised foundation on 1/2 acre - lake Livingston on one end of the street and Trinity River on the other end of the street.How do we move forward to cover $100k mortgage? 

You can make anything work in any market.My concern with Austin is the amount of building that is happening.

Currently, I am working on renting out my extra room in my 2 bed, bath condo.

Buy the affordable 3-5 bedroom home ($350k give or take.) you’ll find out if you like house hacking, if you can make house hacking work, and if you’re making money/got that raise.

Any advice on how to cordially respond to these 'work orders'?

In that scenario, the rehab would cost you Zero cash and the rent went up, giving you an infinite CoC return (on the rehab work.

But they will tell you how we work together to hit your expectations as best as we can!  

I would recommend working with a local agent as well as having a real estate attorney review the financials and association docs.

That is common from many lenders and it will also give you more time if need be if one of the other options does not work.