One thing that Nashville is known for is ecclectic, diverse, affordable homes. According to what you need you have several options at the under $200K price range.
1. Woodbine, Glenrose, Murray Hills: mostly ranch homes, finding a 2 bath may be a challenge, but 1 and 1.5 baths are commonplace. Within 5 to 8 minutes to downtown.
2. East Nashville (specifically Inglewood, Shelby Village, Rosebank, Maxwell Heights, Neil S Brown, Cleveland Park, and McFerrin Park): Expect every sort of home you can imagine from bungalows to Tudors to new construction to ranch homes. Again, if your bed and bath needs are flexible, the neighborhood has a lot to offer. Areas vary from 3 to 12 minutes from downtown.
3. Sylvan Heights: You'll find several cottages and some new construction; however, the new stuff will more than likely be above the $200K mark. 3 minutes to downtown.
4. The Nations & Charlotte Park: Lots of homes varying from ranches in Charlotte Park to tons of variety in the The Nations. 5-7 minutes to downtown 
5. TSU/Fisk/Meharry: Ecclectic homes, new construction, cottages, Victorians all easily within your budget. 3-5 minutes to downtown.
6. Hope Gardens: A few options are here, some are new and some exist. You'll have to be open to the stock because it is such a small little neighborhood. walkable to downtown.
7. Villa Place: I LOVE LOVE LOVE this area. There's actually two homes I can think of that I've been in that may fit the order. Some miss the "cute" factor, but it's walkable to The Gulch and Demonbruen shops. 2 minutes to downtown
8. Historic Chestnut Hill: Very very tiny neighborhood chocked full of historic, early 1900s homes. Within walking distance to the new Rolling Mill Hill. 2 minutes to downtown.
9. Woodland-in-Waverly: Limited stock, but when you find it, it's good. Location rocks with walkability to Douglas Corner. 3 minutes to downtown.
I know it can be a struggle to find the perfect fit, but with the right guidance, in Nashville it can be fun and fulfilling!
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