Discouraged...tough market + tight budget...should I wait?

[Richard Burke]

Ive been doing research as well as reading books. The housing market in south florida is pretty tough for my budget (150k)

I was pre-approved for a loan up to for a first time buyer /owner occupied loan. I have 10k that I could put towards my investment.

The few realtors Ive spoken with have basically told me that it'd be extremely tough to find something within my budget of 150k.

Im wondering if i'm being too picky or unrealistic.

What I want:

3bd/2bath single family (or smaller if it has an inlaw suite). It has to be in liveable condition but I don't mind putting new paint on the walls. I want my total monthly payment (PITI) to be around 1200/month. This will allow me to live in the house for a year until I rent it out. This will also allow me to put away money while i'm living there.

so im sitting here slightly discouraged, weighing my options. I could just keep saving for a bigger down payment? 

Im assuming I should just keep looking for a good deal.

Advice?