Pivoting strategy for Austin area, hoping for advice

[Taylor Null]

Hey all, originally I had the rosy ambition of going in on an owner-occupied duplex in the Austin area, but quickly came to the realization all the duplex/multiplexes on the MLS here are either overpriced or need a substantial down payment to make financial sense.

I have now shifted my strategy to buying a more modestly priced SFR outside of Austin city limits with 20% down. I am hoping to add some simple/cosmetic improvements to the house for a good ARV. My goal is to live at the house for one year then rent it out and buy another property (BRRRR). I have been casually looking on the MLS and I don't see any properties that would really make sense for cash flow. Up north in RR and Pflugerville it seems like the 3/2 rentals range from $1,400 - $1,700. Even at $1,700, I would still be at negative cash flow.

So my question for y'all is what am I doing wrong? Should I be looking further outside Austin? Should I focus on off-market houses?

[Beau Fannon]

You you are not doing anything wrong. In fact, I'd say you are reading the local  market correctly. The nature of our current market is not friendly to those who can't afford to pay cash for an investment property.