Austin Multi-Family - Prices still worth it?

[Michael Nelson]

Hello All - 

I currently have 2 rentals in the Houston metro (currently living in Houston), and have been considering using the FHA Loan with 10% down to purchase an owner-occupied triplex or fourplex in the Austin area. For personal reasons, I would like to move to the Austin area (big outdoors guy/Houston is very flat), and I'm fortunate as an engineer to work remote - relocating isn't an issue.

It's no secret that Austin real estate is hot and I have concerns about making a deal work with how much Austin real estate has elevated to over the years. Triplexes/Fourplexes under 500k are possible to find (East Austin/South of Lamar near WestGate, etc.)  Assuming I could close a deal on a fourplex, hypothetically at 450k, living in one unit, renting the other 3 out - I'm curious of investor's opinions on Austins market. 

To cash flow positive with only putting 10% down + Austin Property Taxes is difficult, but this will also be my residence for a couple years. (not wanting to be solely reliant on appreciation for purchasing a property)

To boil down my question:

- Do investors think Austin is still a place for novice investors like myself trying to accomplish the above with multifamily investing?

Also to note: I'm not dead set on Austin - I've also been exploring the San Antonio area as well, which still provides proximity to New Braunsfels/Austin, but you can find triplexes/fourplexes in the metro for under 300k. I personally think San Antonio has a lot of potential for growth as the metro Houston/Austin markets price people out.

Appreciate any advice. 

Best,

Michael