From my experience, you can use that savings to house hack with an FHA loan, invest in a turnkey property in a more affordable market, or even partner with others to expand your purchasing power.

I'd target areas near colleges or transit hubs for affordable properties, and I’d look into financing options like FHA loans or creative financing to make the most of my capital.

In markets where affordability and cash flow are tough, focusing on stable, long-term rental markets with strong resident demand can make all the difference.It’s completely understandable to feel cautious after missing opportunities in the past, but real estate has always been about timing and strategy.

Part of the investment thesis was getting it for a bargain, then building an ADU complex on it as affordably as possible, getting it to cash flow, and realizing value on both the rental income but also property appreciation given the work going into it.If the property will really only be worth ~$1.70M once we are finished, I will likely just stop the project now and exit the house as soon as possible.If you do not get dollar for dollar for projects such as this, how would house flipping ever work?

If you're open to expanding your search, Columbus OH also has positive cash flowing deals at an affordable price point - $120k-$180k. 

😳This is caused by a combination of buyers not being able to afford to buy with interest rates back up above 7%, and seller’s not wanting to budge on their sale price...a standoff.My guess is 2025 will likely be just like 2024 and 2023 if rates stay above 6%....

God forbid something happens and I either can't get rid of a tenant or can't find one, I would barely even be able to afford the mortgage

You could also team up with another investor to afford better deals or start wholesaling to build cash before buying rentals.

Or try the reverse - rehab a property to Class A standards in a Class D neighborhood and try to get a Class A or B tenant to rent it.Unfortunately, many newbie real estate investors are jumping into buying affordable Class C rentals - expecting Class A results.

If not, ride out the 12 months with the hard money lender.People have to make good choices and not over extend themselves just for the sake of buying something they really can't afford or that doesn't make good cash flow.