Buying a property I really can't afford

[Steven Lewis]

I bought my first investment property July 2014 in all cash. I am looking to buy a property to live in and use as an investment down the line. It sits right on a river overlooking views of the NYC skyline. 

1. How far do you stretch your budget to purchase something hoping that the value will increase long term? (The complex just got out of litigation and the agent informed me prices are starting to rise 10-30%)

2. What percentage of ROI would you like to see on a long term investment property/rental property to decide if the property is worth it?