How to enter an expensive market? - Austin TX

[Brandon R Klassen]

Hi Group - 

I am new to real estate investing but purchased my first unit last year. Its a single family home currently being rented out. I live in Austin TX and the real estate here is pretty expensive.  For example, I paid $245k for the property and it is currently being rented out for $1700. The house has appreciated on average 15% year over year for the last several years. This was the best deal I could find at the time. I want to purchase more, but the cost of property here is so expensive. I put down 60k+closing costs which came out to around $70k total. I also have a full time job that allows me to save around $40k per year, but even then it takes me two years to purchase a new property. I read on the forums about other folks purchasing properties for much cheaper and making them cash flow positive. I do not have time to put in a lot of work into the houses which I think I am at a disadvantage from. 

Do you think my first house is a good decision for me? What would your advice be? Should I look at other markets outside of Austin? Should I just save my money and purchase a property every two years?