The idea that I'd have is to save as quickly as possible for a down payment on a more permanent home later. 

That of course assumes you've done your banking and accounting properly in order to successfully preserve the corporate veil.Umbrella liability insurance seems like a more robust defense, but perhaps I'm missing something?!

TX is a more "open" market, so I'd check with the state first.However, about half of the legitimate title companies are owned by Fidelity whom I don't have a problem with.Yet in 2009, when things got rocky, there was a real issue with escrow funds being secure in smaller companies also.I hate to say it, but stick with large legitimate title companies and not one-man offices.

I am currently house hacking a SFR + garage apartment in the First Ward/New Arts District and prices are still low enough in this area to get in at a more reasonable price.

 I am also currently deployed and asked this same question a month ago.I would check with a more local lender in your target market first.USAA or veterans united likes to market to us, however, using a more local lender that has an investors mindset and that may even have rental properties of his/her own is the route i just took last week.

It is a more accurate measure of the cost of borrowing.

Ultimately, you need a more creative CPA, tax advisor, etc...

Here is a more detailed example of what we are doing to it, in order or magnitude.Squaring off where an old porch was to incorporate a 3rd bedroom that's there (with no inside access from the house)Finishing a second unit that is on the property alreadyadding a second bathroomredoing the original bathroomleveling and tiling the floors and putting tileThose are the big items we need done, along with some others, here is the estimate I got. any help would be appreciated.

For example (and i'm not sure exactly what you're current strategies are), has the market made you more hesitant about say, flipping, and more comfortable in a more buy and hold type of approach?

If the full PITIA is added onto the debt portion in the DTI, would a more flexible lender be able to work with that, or would I need to just wait until next year before purchasing a home?