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Updated over 6 years ago,

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Expensive Mistakes, Bay Area Blues, Buying My First Property

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Goal: To achieve complete financial freedom by Age 33 & per the 10x rule will own 10 million dollars in property by age 33 and have 10 million in property paid off by age 43. At 33 i want to donate 10% of my cash flow to charity and start an apprenticeship program with all my property by letting kids work off their student debt & providing them with their own investment property after completing their apprenticeship. 

Currently looking to buy my first investment property. Seeking a low to no maintenance property, with break even cash flow, to hold indefinably. I have been looking at houses at the only place i  am familiar with Chico, CA where i went to college. However any single family residence requiring minimal work can only achieve about $100-$200 cash flow not including any potential capitol expenditures, repairs or landscaping so it is pretty much a wash. The best value is 4 bedroom houses for between 300-325k that were selling for about 260-275k 2 years ago. Tight market for single family residence with little vacancy. 

I have been touring houses and placing offers constantly over the last month but can never justify getting into 250-300k of debt to pretty much pay off the mortgage. I know leverage will pay off in the long run & I will not have trouble affording the loan but i have been hoarding money & want to invest in real estate aggressively with my 1st time home buyers loan. Looking to start a conversation on if starting with a property for pretty much no cash flow is worth the experience. 

Please see my situation below & advise on what you think is a path moving forward.

Situation: I am a engineer working in the crazy bay area construction industry. I live with my parents at no expense  and have been for 1-1/2 years & have no debt. I am leaving the bay area for a job in San Diego or Austin Texas beginning in June of 2019 due to my parents selling their house & vesting of company stock at that point.  Over this period of time i have lived as minimally as possible & have saved 95k. I also inherit 75k from a trust at 25, become vested for 40k of company stock in June & save $1300/ a week in cash per my budget. Basically i will have close to 300k in cash this time next year & dont want to make an expensive mistake the derail me from my dream & sacrifices i've made to save. 

Thoughts: Where ever i move will have a high cost for property. After reviewing the landscape of real estate i just think it is best to hoard cash until the next market correction. But with interest rates increasing & aspirations to use leverage at a young age i dont know what to do when the nearest real estate that is affordable & in a market I understand eliminates the possibility of getting a fixer upper.

Would appreciate any thoughts. Tough criticism welcome. 

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