I look for cheap houses that aren't completely run down (think houses that were in the middle of a remodel when the owner had to foreclose so the house is in complete disrepair). The best part about me looking at these houses: I don't know why I do it--It's not like we're going to get a different house, and if we did, I doubt we'd go for houses smaller than ours (ours is 1250 sq ft).
4806 Peach Grove Court, 1093 sq ft for $98,900
5424 Walnut Grove Dr, 1271 sq ft for $94,900
And, being me, I already checked to see if they were in the floodplain--they aren't. This is, Of course not to say that there aren't other nice houses, because there are. They just tend to be in the Onion Creek Neighborhood and Hornsby Bend (Austin's Colony) areas...which I want to say may be more affected by floodplains, but don't quote me on that...that's why the City has this nifty difty floodplain viewer.