Austin, Round Rock, Pflugerville

[Michael Win]

Hi Austinites,

I am 40 and finally at the stage of my life where i want to buy SF homes to diversify my savings.  

I have a large chunk of money (mid 6 figures) sitting in cash.  I bought a condo last year and since it has been rented, I am alittle cash flow positive ($100/mo).  I am looking into buying SF homes in the round rock, pflugerville area for under 200k.  From what I can tell, I can get a 10 yr old home for under 200k.  If I can get rent at $1500/mo, I will be alittle cash flow positive.

I plan on buying 2 this yr, and if everything works out well, 2 more.  

Is my thought process reasonable?  I think the home values in these areas will keep going up.  Even if I put 20% down (35K), I would think these homes would appreciate by 35k in 5-10 yrs.  I am sure rental will also go up.

I don't need cash flow right now b/c I am in the 1% of income.  

If I can get to 5 homes and have it paid off by retirement, I could easily live off the cash flow at that time.

Is this reasonable?  Are the RR and Pflugerville areas a good place to start?  Is my thought process flawed?  Anything I should be concerned about in these areas?