I am a recent college graduate student-athlete considering REI as a lifestyle!

Unfortunately it sounds like they cannot afford the home anymore, and with that large of a change in income, a change in lifestyle is in order meaning a cheaper home.

The west coast tends be more older folks and a quieter lifestyle, but your dollar will generally go further. 

http://www.biggerpockets.com/renewsblog/2013/09/26/lifestyle-investing-podcast-aaron-mazzrillo/

This is a good example of how to transition to a secure lifestyle while using your existing asset base to buy more.Review: 1.Break the mold and look at multiple income property to start.2.Go to a first time home buyer class to get ready.3.Go to a lender prepared to qualify for an affordable loan amount.4.Focus your effort on learning how real estate works.5.Realize the sooner you start, the better off you will be.6.Offset expenses by renting to others.7.Manage tenants, deposits and property responsibly.8.Plan for the future using assets and equity lines to start.9.Keep reading and learning how to do new things with real estate.10.Find mentors and use knowledgeable people to help you along the way.I hope this little plan of entering into homeownership has given you some ideas in your quest for independence.

However, if you love the beaches lifestyle and want to house hack, this is achievable with the multifamily at the beach.

Some founders have lifestyle businesses and want to keep their businesses small.

It is the "subscription model" life style (music, books, cars, etc.)

And in my opinion, real estate acquisition is one of the last few ways someone with an average income/lifestyle can reach the promised land and actually map it out...unlike pretty much every other investment out there. 

many of my friends classify me as 'rich' now. i think it helps that they are poor though...lol in all honesty, after working with people of all lifestyles and all networths, i don't think you will really 'know'. if you notice, those that do have the money and that we may deem to be rich, still want more and more. call it gluttony if u will, but i think their mindset is dead-on!