I know there are also more details that the decision to file this as a primary residence or break up the income producing parts of the house such as: ability to write off mortgage interest, depreciation amount, tax benefits at future sale in the future.

I was attracted to Buy & Hold because i want to generate cashflow and start setting up a foundation for more fun and lucrative RE projects and a healthy retirement income.

If the original poster's forms an LLC in a state other than Texas, and then the LLC is doing business in Texas by operating an income producing property in Texas, it's still going to need to be registered in Texas (as a Foreign LLC).

@James Purvis Buy another cash flow producing property!

.), and how healthy is the HOA financially, ie: are they adequately funding reserves for capital improvements (roofs, paving, etc.) and are there any current special assessments?

If you see that they are all essentially the same units but with different addresses and they produce the same returns, and if you like those returns: stick with that model UNTIL YOU CAN'T! 

My sister and I have swiftly produced a couple of beginning strategies for our business.

I know I have a different mindset as a small time investor where holding an asset that wasn't producing would make me want to sell.

I personally had to persuade underwriter on my most recent acquisition to use my income history from a previous STR home I had already liquidated to prove that using my same business model (and in the same area) would produce the same results..which they fortunately agreed to in the end.    

In my market in Northern NJ, specifically Bergen county, in the last 2 years intently searching the MLS exclusively, I have only found maybe a hzndful of deals that comfortably produced a Cash on cash return of 8-12%, and one of those I currently have under attorney review.