And be prepared to discover that employment verification has been outsourced by some employers to some third party operation such as The Work Number - and that these third party operations charge a fee (roughly $20) to verify employment; so do you pick up the cost for that, or are you planning to pass that along to the applicant?

You still pay taxes and other operating costs.

I'm open to invest in cities other than Austin and I operate another business, which is not RE related, out of Houston. 

I was operating on the assumption that dying anytime soon was not a part of the plan.

I was told that I needed to register my company with the states I will be doing business as a foreign entity in order to be able to operate in the states I do business in.

Using those numbers I arrive at an operating expense of $15,480.

Using those numbers I arrive at an operating expense of $15,480.

Do your best to separate your operating expenses in schedule E, but technically all those expenses you are increasing your basis by should be sepreciated over their useful lives.

I work full time as a Operations Manager and a semester away from college graduation, so I'm pretty busy and from what I read investing in real estate becomes a full-time job.Any advise would help, should I search for "multi-families" or "flips"?  

I'd be happy to discuss with you about my fund anytime, though I will say that we typically don't invest in one-off deals, but rather whole operating companies that have reached critical mass.