While a car is rarely an asset, unless it's rare, sounds like you have a good deal and you could turn around tomorrow and re sell it for a small loss...or maybe you'd be able to sell it and break even.IMHO, now's the time to do it while you are young and have no dependents.

Be careful of Austin proper, as it has enacted several tenant-friendly laws that will hurt returns.Also, if you restrict yourself to $100,000 properties because you don't want a mortgage, you are basically forcing yourself into either bad parts of town, very small properties that will be hard to resell, or your are going to have to buy pieces of junk that need a lot of work.  

Everyone buying a house in today's market will NOT be able to resell their houses 2-3 years later IF there's a drastic price drop from an inventory surplus.Smells like foreclosure and short sale city eh?

If your intent is primarily to resell (the flip) then you can't 1031.But if you happened to adjust your model a bit and decide to buy fix, rent and then evaluate your intent is different and a 1031 might be appropriate. 

From an investors perspective, you just have to account for longer vacancy/resell times.

I can always resell it to a home buyer and come out OK if needed. 

I think Bryan it might have to do with the fact of reselling generalist information versus these people working directly with investors in their area closing deals.In investing there is "alternative investment selection" where someone can look at multiple choices to put their money into.Someone touring the country selling marketing material that may not apply at all, apply a little, etc. to that investors area doesn't offer much value.

If you buy them with the intention of reselling them quickly, you just have to buy them very low, fix them up, get them rented (if you want to sell at retail) or wholesale them vacant (and also not fixed, depending on what type of wholesalers you are working with).

@Brett Wagner best MF are the ones that rents are low, mostly occupied and the property is in bed shape and not in a dangerous neighborhood.You can increase the value by making the repairs needed (reposition)-> by that increase rents and ROI -> and by that resell it for a big payday.The most important thing is TO DO THOSE REPAIRS, the more time you delay them the more they get more expensive.

One mistake could destroy you.For starting out, I suggest you work with somebody who buys at auction and could re-sell (whoelsale) to you for a slight mark-up, but give you free and clear title.