They said the cost of living was high as property taxes are higher %'s upkeep of the home from extreme weather and overall higher from all the activities  that had to come up with to get out of the house clothing, entertainment , the right snow cars not mention wear and tear on the vehicles.

If you are going to make a point out of what I said, then please don't omit words to make your opinion carry any weight.

My 1st house I lived in and had no intensions on "investment", I just ended up keeping it due to the hassle at the time it was better to keep and rent.

To sum it up, keep saving and start looking for that multiunit!

After 3 months and if the budget stayed at 20k (and I would argue buying that sweet of a deal would exist in most markets and only have 20k work to really fix up the house so that you are not getting killed by deferred maintenance), this investor would have about $3,000 in holding cost (taxes, utilities, yard up keep and interest).  

Management: $240 (10%)Cap Ex: $240 (10%) (roof,water heaters, electric heater, hvacs are pretty new)Vacancy: $120 (5%)Lawn Upkeep: $120 (5%)Repairs: $120 (5%)Approx Total: $840_________________________________________________________________________________-Total Expenses/Profit Margin-Income     $2,400Mortgage: $1,350Operation: $840Profit:        $210Deal or No deal? 

The city is taking action for "lateral" earthquakes, an example for this is on concrete basements, these doesn't apply, because there are shear walls below the building to hold its weight. 

An appraisal will carry more weight then a BPO.

(day to day operations)Person 2:  Master contractor, well versed in every aspect of residential maintenance/remodeling, more flexible schedule to be able to visit properties and make repairs/upkeep.  

Work out the first deal weighted in his favor, then he will be comfortable working w/you on subsequent properties.