All in all I think your situation can be summed up in the sense that it doesn't make sense to invest in this area (austin) without an almost speculative appreciation play.

At 4k a month in rent, you'll be lucky to make $100 a month.For a flip, you wanna make sure, you can sell it for 30% over purchase price, so 450k after holding for 6 to 12 months.If its long-term hold and wait (hope) for appreciation, then it would be pure speculation.

His DTI is over 90% but his DSCR is probably 1.5 (of course speculation, but you get the idea).

Nicer places in nicer areas are great, easier to rent, and usually less work to maintain but if your just going to break even on a 30year note its not really worth it in my opinion unless your in an area where you expect to see a lot of future appreciation which is always speculative at best and even more so on a multifamily where the income will always dictate the selling price. 

As for the comments about appreciation, also as a novice investor, I think there is to much speculation about the market in the future to bank on appreciation.

Anyhow, this is all speculation and my opinion.

Or is that more speculation?

Loved the post....won't speculate.....

Me Chad Kagen live in atlanta, GA I joined a New York speculator aggregate a month ago and It has as of now been extremely advantageous.ThanksChad Kagen

We are in atlanta and anywhere that a young professional can afford alone is extremely speculative and more than our risk appetites are hungry for.