So when you are getting ready to move out you can compare rents and costs and determine if its better to rent or sell

The same philosophy is apparently being applied to real estate but the internet and real estate are not remotely comparable.

The banks will not take an income approach and if there are no like-kind properties around, it will be compared to the nearby duplexes, regardless if they are similar in year built, condition, sq. footage, etc. 

Will you have to update anything prior to renting or selling?

I’m also charging the tenan $1000 security deposit, and if they want to move out they have to give me a writing notice within the first five days of the month prior to moving out, if they don’t give me the appropiate notice then I keep their deposit.

Property in Austin is also more affordable compared to other hot areas, including the Bay Area and Seattle.

With that in mind I would give notice according to the regulations prior to their leases expiring.

I believe the UGB will have expanded somewhat but the available land will still be limited when compared to demand causing an increase in price.

Follow up question, those of you using this niche/ strategy how does this compare to stick-built costs?

It sounds like you need education prior to investing.