This is a good sign but will also become your competition so you'll probably want to rehab the property at some point to compete.

1) What separates your preferred lender or source of funds from the competition?

Because of that they are pretty competitive (especially College Hill) but if you could find wholesale deals should be easy to find investors.  

I've read that banks may take as little as 75% of the asking price if there isn't much competition.

It is a very competitive county but if you are quick on the draw you only need an hour to do well. 

Less competition in these markets... some good properties and some marginal.

Since Dallas is getting more competitive, I'm thinking about moving out to the little towns on the outskirts of the city.

I jumped in but only barely with 500 letters per month in one of the hottest and most competitive markets in the country. 

You may be able to hold the asset in the LLC and sign personally on the mortgage as a member of the LLC.Best to shop the deal around and get some competitive quotes and options on your financing... this is where having a stable of lenders makes things a bit easier.What is best is what makes sense according to your business plan and goals... 

The nice thing about this is, every time you analyze a deal to figure out your offer price, you can talk to that same broker and see how competitive it would be, and how close it is to the price the property ultimately sells for.Good luck!