I am looking to buy SFH in Austin around 200k for investment purposes. Any suggestions on which area I should look around?

Pflugerville, Hutto, Kyle, etc.  Buying in Austin is possible too in the outskirts, but that price point is tough now.  

for buy and hold, look in round rock, pflugerville, or Leander.

I agree with @Bryan and @Jeff, try to look Buda, 78719 and 78744

Kyle/Buda are practically the same community, but you will find more in your price range in Kyle 78640 or the southern zip of Buda @ 78610.  The average price is much lower, and it's actually growing faster in Kyle than it is in Buda.  FYI, Hays county is forecasted to be the fastest growing county in the state over the next four decades.  Solid area to be looking, and the pricing isn't through the roof much like Austin right now.

@Jerry Gates I recommend Buda (78610) or north Austin (78758). Kyle is overbuilt and has been for years, when the market draws back, Kyle always loses its value. That being said, it probably will be a good long-long term investment, but Buda has had much more control on its growth which has driven its prices up. However, at $200k, you can find plenty in Buda. Hope that helps!

Thank you for all the valuable information. I have started looking in these areas.

I see that there are some homes in Manchaca area as well. Any information about this area?

I'm looking to buy my first out of state around Austin. Is 78641 Leander a good area? Any insights from anyone? I'm thinking of buying and hold for rental. Any thoughts?

Sorry to hop onto this post, but what do you guys think about Georgetown?

@Josh Reborchick  I grew up in Georgetown and have lived there most of my life, so I know the area pretty well. The majority of the rental properties are on the east side, including some duplexes & fourplexes. Below are the most recent market stats for East Georgetown. The median sales price up is 16.5% over the past year, yet the median sales price is still below $200,000. The typical tenant profile is going to be a young family or possibly students at Southwestern University. The average rent for a 3/2 single family in Georgetown for the past 90 days is $1,463/month, so I would focus on homes priced under $150,000. Overall, I like Georgetown. The schools are good, and our tenants usually stay for several years.

Look at 78747 McKinney Heights or Springfield area.  Newer houses with low maintenance, rent well, about 10 miles to downtown.  Lots of growth in that area and they are working on a 555 acre park that will the biggest in Austin (onion creek metropolitan park).  I think it's still undervalued although prices have gone up quite a bit in the last few years.  We own some rentals there and they've performed well.

If you do buy there obviously don't buy a new build , look for a deal in which you can create some equity by buying under market.....I would say that goes for any rental you buy.