Bottom line is whether he rents a $1.2M house or buys it, there is a stretch to his finances.

My wife and I have been just setting aside cash to buy a home. we have multiple ideas, starting from:1. buy a single family condo/townhome here in orange county2. stretch a bit, buy a duplex here, rent out the other smaller property, eventually move out to a second home and turn this one into a rental property. 3. buy in my hometown (Duluth GA) as a rental, while we still rent an apartment.

Big companies even have this issue, and their solution is something that you may want to consider.Find a capital partner.You have something that many aspiring real estate investors lack - track record and experience.With the right capital partner, you can stretch $20k to $200k in equity.

As for getting a loan, that's generally advisable as it will let you stretch your investment dollars further.   

Stretch to make this happen, ensure you have adequate liquidity to survive any bumps you may encounter down the line and you should be happily pleased in the end.   

And thats stretching it.

I'm sorry I keep stretching this but I still have a couple more questions.

Also, pay more and stretch to get into a better area.

If so, that may not be a far stretch- however if you're a newbie throwing in a lot of DIY / first time working with contractors on an extensive project - I'd steer clear.Best of luck either way!

If it's going to stretch out because of an eviction, just call and explain that to them and I'm sure you'll be fine.