Typically there are only a few ways you can achieve cash flow in Austin:Buying cash flow with an increased down payment, but COC drops sharplyPerforming a major rehab and bringing rents up to market rateHolding the asset for several years while the market rents grow

Read Beginner’s Guide to help you get started: http://www.biggerpockets.com/real-estate-investingI hope BP helps you achieve your goals!

If your lot is flat with all utilities to the site then this should mitigate some lender's concerns as it is usually the horizontal construction that has the most unknowns and results in the difficult and expensive cost overruns.The fact that you have equity in another property could be helpful for lenders who would consider cross-collateralizing to achieve their desired LTARV ratios, but I would not offer this at first. 

Do you have a plan for how you're going to achieve your $20K/mth goal?

@Steven Chraca I recommend you take some time to determine what your goal(s) of being licensed are and then check out a few options and see which will best help you achieve that!

The first step: Think about what you are trying to achieve and who will be living in it.If you are going to rent to families or allow pets – think waterproof long-term flooring.

This is primarily to help him reach that goal because I want him to achieve that without worrying.

I have a goal, to achieve financial freedom.

Account Closed It depends on what an investor is trying to achieve and how they weigh different features of the two different real estate investment vehicles (Syndication vs REIT). 

The above mentioned strategy may not be compatible for what you are trying to achieve , how about strategy #22.)