However, if you have space to lease out the story potentially gets more complicated.In my area there is still a ton of open lite industrial commercial space so competition is pretty tight to find new tenants.

You want to be right at or slightly below the market.Second is to be comparable to the competition.  

I am exploring rural locations but not sure about vacancy and rent rate compare to more active but competitive areas around Houston.

You will find that will a very well reseached and well managed fund, you can achieve consistent and reliable double digit returns, which is going to be very competitive if not exceed your return on SF investments in most situations.  

And of course with our competition here for dirt it would only happen if it never hit the open market

Depending on the competition in your market, the old ARV x 70% - Repairs formula may not win any deals.  

There's a lot of competition from larger complexes offering a free month of rent that compete directly with you for tenants.

Ranches and two stories that have updates sell in mid-180k-200k range.Given the competition and what I have left to do, what's your suggestion?  

Talk to your lawyer about your specific situation but generally the jurisdiction of your fund will be a natural result of the structure you choose and where you and your investors are located (in some industries it might be focused on a global hot spot for the industry).  

That should make your house competitive and should sell even during the winter.