If you're a true cap rate focused investor, I don't think either of those areas are going to present appealing options.

You may try engaging a broker who can connect you with multiple options, rather than just checking with one lender. 

Tons of rating factors that impact the price from one property to another.I say this without even considering coverage, service, and what you might want as there are usually choices to be made.Your best bet is to work with an independent agent that can provide advice along with multiple options for every scenario so that you can find the best value in each situation.

What are your thoughts on investing in a more affordable options like condos or townhomes in the area?

I was starting to look at this as an option.

The market here is obviously tough (and we'd like to invest here or nearby for several reasons), but we have heard about second home loans that have more favorable down payment and interest options which could increase our buying power and allow us to cast a wider net during our property search.Understably this type of product would have to pass the sniff test.

Nonetheless, traditional financing proved to be a reliable option.

I'm trying to figure out on the naming of this facility as this is going to be much more then just simple self storage and would appreciate some thoughts as some options I'm thinking are     as some keyword and then followed by  storage and yards or should i leave the yards out . like :   safe storage and yards    american storage and yards 

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

If house hacking is not for you, have you considered exploring other Texas markets 3-4 hours from you?