I recently moved out to San Antonio to take advantage of the future growth I expect to see from the SA/ Austin area. With such large amounts of people and companies moving here, I see it as a no-brainer to buy here.

What I'm trying to dial down, in particular, is a smart investment strategy for these cities. Originally, I was looking to do a cashflow-centered approach in the suburbs of SA, but later found that most properties in decent areas do not hit the 1% rule, and property taxes eat into the cash flow. There appears to be a lot of competition for the cheaper, cashflowing properties, and similar high competion for cashflowing multifamily.

I've started looking at bigger properties that will not offer an immediate cashflow, but are better in terms of price/sqft while also being in nice areas with good prospects for future rent increases. 

In one example, I could buy:

1) a 1000sqft average house for 150k which rents for 1250, or

2) a 2100sqft beautiful brick house for 200k that rents for 1400. 

The bigger house does not cashflow as well, but the price/sqft is much better. It seems that the 2nd would be better for a long-term play, but I'm unsure if I'm correct in my thinking or off the mark here.

Putting all of this aside, I'd like to heard what other investors are doing in San Antonio, and also Austin. Are you going for cashflow, appreciation or both? What types of houses are you buying and in what areas? I feel like my strategy may be totally off the mark, so it would be great to see what successful people in this area are doing. Thank you.