Expensive Mistakes, Bay Area Blues, Buying My First Property

[Account Closed]

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. 

[Jay Hinrichs]

your goals while commendable are not realistic the only way you do what your describing  10 million etc. is to become an operator.. and big time one at that.. real estate is a LOOOOONG game  not sure what or who put it in your mind that you could go from zero or basically a few hundred grand in seed capital to 10mil of free and clear props in 10 years.

you may want to rethink your goals and get just a tad more realistic..