The capacity exists to build hundreds of thousands of homes per year that directly benefit low-income areas. 

Keep in mind I removed 10% mgmt fee, but kept 10% reserves for Capex and repairs:Cash Flow : $960   Pro forma cap rate of 8.42% (obvs better if you could get my high estimate of $75k rehab down)COC return:  9.6%If any OOS or local KC investors  are interested in having detailed analysis and information sent your way, contact me.

And I don’t want to have to pay a monthly fee.

You can find some breakeven or slight positive cash flow about 30 minutes outside of Austin in places like Lockhart and Jarrell. 

For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

Regardless, you sort of need to take two steps at once: A) talk with an attorney to understand your options and nuances of those options and B) start having conversations with people you might think would invest with you to understand if there is any real interest, what they are looking for and if you can realistically offer that to them with what you are doing.Once you have that, then you need to understand underwriting with investor capital, proper fees and profit splits, taxes, reporting, etc.

Tenant pays all fees and the choice is theirs.

Funding: my plan is to shop around hard money lenders for purchase and rehab for best rates/fees/down payment.

In two of my 4 family units I did a cash out refinance after renovating 2 units in each and the appraiser gave me $4 for evey $1 I spent in updates and I increased the rent per unit by $500/month per unit. 

Sellers motivation shouldn't factor in what you can afford, thats a bonus if they will negotiate, but your numbers have to make sense to you and work out for multiple exit strategies (str, ltr, sell etc)Running the purchase numbers is pretty straightforward, use almost any online mortgage calculator, make sure you know taxes and insurance (taxes will go up a bit if it is currently owner occupied and you don't plan to live in it) Once you know your mortgage amount then start looking at other STR's in the same area and same size/amenities and see what they are getting per night and how many nights a month they are rented to calculate what you MAY be able to get.