However, the underlying question in regards to financing should hypothetically be possible if you were able to create the gap in equity through repairs, inflation, loan pay down, etc.

The irony is that some realtors and brokers use those zestimates(and/or other inaccurate data) to inflate the "pro forma" calculations when it's in their clients favor, so always do your own comparable!

Purchasing homes here in almost any other fashion is cost prohibitive as the market is over inflated. 

Over the first six months of the year, SFR sales are down 1.6% from last in the City of Austin with the median SFR rising 3.2% over the same period to $387,100.

That appraisal is likely already inflated - how far do you want to push it???

I am shocked at how fast some of these duplex in crappy areas sell for at inflated prices.

Have a great house, low mortgage payment, and in a rising market.

I live in Eugene, OR and see prices rising, see the market booming.

In my market, multifamily properties are really inflated right now, so there are a lot of areas where you can get better returns on SFHs than multifamily.

Not really sure where your looking at your prices but from my research looks like 3beds ate down 6% and 4beds are up 1% from exactly a year ago so prices arnt on the rise yet maybe a small increase from a few months ago I find pricing in the winter months dips a bit as well but selection is quite low.