@Richard Dunlop I believe that the market forces that are driving the Southern California market are strong , and will continue to be for...... well, as it turns out I don't have a crystal ball.  

Wish we all had a crystal ball.

., my little crystal ball shows that one distinct possibility is 3% to 5% down, FHA or FNMA, live in it for at least a year while saving up your 3% to 5% down on the next one & improving the place you are living, convert the improved departing residence into a rental, rinse and repeat. 

No one has a crystal ball.  

In efforts to trigger some Keyword Alerts for other investors near myself, I have added a list of surrounding towns below.Keyword Alerts: Gurnee, Waukegan, Grayslake, Round Lake, Round Lake Beach, Mundelein, Libertyville, Lincolnshire, Vernon Hills, Lake Forest, Lake Bluff, Deerfield, Arlington Heights, Wheeling, Buffalo Grove, Palatine, Schaumburg, Crystal Lake, Cary, Pleasant Prairie, Kenosha, Racine.Thank you so much!

I have no crystal ball.It's definitely not an easy decision.  

@Crystal Smith  in my lending days we did a lot of these of course.. can't ever recall an asset manager calling us though... could have happened my secretary picked it up or something.  

That is good advice Crystal. 

But without a crystal ball, the only way I know how to invest (especially as a beginner) is to make sure the numbers work for me straight away.

First, I was told "No one lives on the west side unless they have to", and also: "Highlands is OK, but just don't buy on the east side of Federal" but that was where I could afford.Nobody has a crystal ball, but try to look ahead if possible