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.

Some use the Life Styles Unlimited contracts which has that included into the contract.  

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

It's complex and there are about 3100 taxing units (counties) in the US, all with their own set of laws, rates and auction styles and rules. 

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.  

This may be separate fee simple ownership, not condo style like I mentioned.

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.