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Start with a small, boring move: high‑yield savings and getting pre‑approved to learn your real numbers, or house‑hack a room to cut housing costs now. Before any purchase, model worst‑case cash flow (vacancy, repairs, higher rates) and decide your walk‑away criteria. The biggest miss for first‑timers is underestimating expenses and overestimating rent.
Go to another market. You’ll have to put in some work and effort but that’s the only way. I live in a very HCOL and nothing cash flows here.
Buy duplex. Live in one unit and rent out the other.
This
Mentor
I bought a 2br condo that was in good condition, but very dated. Renovated it while I lived there, occasionally had roommates in the second room, but generally improved it over time. Sold it 7 years later after the value had doubled, parlayed that into a new house in the burbs + a rental in another state.
If condos in your area are affordable, they’re often a good way to get in for a reasonable price, especially if they aren’t updated. Just make sure to have someone who’s experienced read over the HOA CC&R’s and financials to make sure there’s nothing that would be problematic in there.
If a condo isn’t “affordable”, then I’d probably suggest started with an out of state rental in the Midwest that cashflows and try to buy 1 more property each year for the next 3 to 5 years.
I bought a SFH, lived in one bedroom and then had law school roommates in the two other bedrooms. After a few years I moved out and rented the entire house to a family.
Bought a condo and lived there for a few years then kept it as a rental.