There's no better GC than the owners themselves.

I think I said this previously, but a really skilled "local" investor knows their market better than the local agents. 

How can I better negotiate/ structure terms in this situation?

If you are repairing your own property that is an increase in the basis of the property, which will result in better tax treatment when you sell.

One possible answer is no extra rate increase  but better occupancy numbers.

If anyone could help me with what city you think would be a better investment and why?

Am I better off not using my LLC and just getting hard money under just myself?

Pros better rates than DSCR and no prepayment penalties.2.

We have been working with a lender that is a family friend but they are encouraging us to shop around for lenders and search for better rates.- Any recommendations on local lenders in the greater Austin area? 

I know the covid boom treated STR investors quite well however I am under the motto of, "no better time like the present".