Yes you would certainly need to close off the upstairs from the downstairs preferrably with a wall, placed in an area that you can easily take down later down the road when you sell, not to say that you couldn't sell it as a 2 unit but it would be nice for you to keep that option later down the road. 

When I imagine how I'd start out, naturally, I am thinking about acquiring a local property - probably a single family home because the multi-family units are out of my price range (for now). 

I live here and my portfolio is definitely more LTR but I do own several airbnb units here too.

For my units, the main issue is whether I need to re-paint and/or replace the carpet. 

Looking at a current listing in Austin (MLS number 5473496), this is 3503 E 17th St, Unit B4.

I would probably start with a 4 unit property using a DSCR loan, which will still be based on the property rents and not your personal income. 

If no, give them notice, recoup what you can from their deposit, fix the unit, and start fresh with a new tenant.

Investment Info:Large multi-family (5+ units) fix & flip investment.

Then drops pretty aggressively every 20-30 units.

I will likely want to live in the home for two years to avoid long term capital gains before renting out the unit & using the equity to purchase another property for myself.