more than likely your strategy will not work the hard money lender will want first position and a conventional lender will not want a second

That being said, I would love to hear what your mortgage and payment strategy would be.

I have a solid rental portfolio of houses here in Austin, but the cashflow is minimal compared to what I can get in multi-family or in the mid west. additionally, I'm looking at purchasing non-performing notes and turning any of the foreclosed properties into rentals.Are there any strategies for selling off the houses, either in bulk or individually, to minimize the tax burden for when I reuse that capital to purchase non-performing notes?

Great thought to research I have heard investors making great returns with that strategy.  

I have been involved in corporate finance, litigation and real estate for over 15 years.

These are each somewhat advanced strategies that i recommend working with another investor who can walk you through these processes if you are not already proficient with them.

I feel like $1000/mo in this area may even be low.I'm aware that no strategy can be perfect.

Also with the numbers given and if it's likely would you try to flip the property or rent it out and us the BRRR strategy?

I am very interested in the strategy of buying mutli units and renting them out.

Tax considerations should never really drive your investment strategy anyway.