Perhaps I'm making this more complex than necessary but given the potential tax burden I'm trying to evaluate all possibilities - especially since the house is in an ideal location for my spouse and I to live there for a couple years.

I found a duplex ( 3 and 3 units) good location, good condition, move in ready.

I would say you are safe in that 6.5%-7% range depending on exactly where the property is located.

Sounds like a big fat mess! 

Much depends on the properties themselves, condition and location(s). 

I'm currently located in Iowa City, IA but will be moving to Austin, TX in the next couple weeks.

Originally I planned on living here for another four years before relocating out of state due to the cheap mortgage payment and the house itself being a better fit size wise for my needs than the houses I’ve been living in, not to mention centrally located.

Any cash you move from your control to equity equals the same thing in both locations. 

We find you undervalued buildings in popular tourist locations, renovate them, manage them, and then pass the profits on to you, the investor.The same is true here.So what’s new and exciting about this project?

Look where job growth is and what companies are out in whatever location you are interested in.