The best way to secure a private lender is to have a Solid Executive Summary for You and Your CompanyYou need a strong Board of Directors, and a good list of previous projects you've completed.Imagine if you were a Private Money Lender, and someone came to you with a deal...

A city like Houston would likely swing back around in due time because of its strong medical, education, labor, import / export shipping ports, technology, etc.Hopefully someone with experience can chime in on this. :)

The Austin Area is strong right now 

I see your hesitation, I think that in this strong rental market we are experiencing in Denver right now it would make this an ok deal, in a softer rental market this would probably suck to own. 1/1 is going to have more turnover than a 2 bed, more turnovers ultimatey equals less profit.

With units the competition is so strong and the caps are so low that you are an interest rate increase away from losing money on a highly leveraged property.

Make sure to check out the website Business of Architecture too, if you haven't already.

Historically, I've been investing in low income, inexpensive houses because they're affordable enough that I can buy them with regularity and they provide strong cash flow.  

What tools are available to help determine the market of a particular area is strong in Rental or Buying

My goal was to hold it for a long time because I believe the area will appreciate due to strong job growth and good schools.  

All of the comments above have been referenced in many publications from knowledgeable people in the investment field, but in the end it's all about knowing your market, understanding what's selling and having a strong buyers list.