Buy and Hold in Brentwood, CA

[Markus Powell]

Hey BP,

I currently live in San Jose, CA. I am looking to move out of the area  In order to "buy and hold", I am really considering moving to Brentwood, CA where SFHs are more affordable.  My plan:

1. Find a decent place in a good school district.

2. Make sure the mortgage payment is = to or less than market rent.

3. Live in it for 1 year (possible FHA loan)

4. Use equity and saving to buy 2nd home 

5. Rent first home ensuring a positive cash flow

I really want to get in the game but dealing with bay area prices are very intimidating.  Has anyone had any experience with this?

MP