Contrary, as long as I can make my mortgage payment, I'll keep the house, even if it is underwater.In this example (which is based on current market conditions), I like microsoft unleveraged better than real estate, but if rates go down to 4-5%, I find an underpriced house, or an area which I expect to have above average appreciation, real estate then looks better.The second reason to invest in real estate is there is a lot of value add propositions to increase returns (closer to running a business than investing). 

The benefit of a permit and inspections is to have an independent party verify work. 

People really like being near Costcos lol There is overlap with those categories and if you look at the comments closer at the top, you  can see price ranges and there can be Class A home in Class B area. 

Part of my issue was not having a reasonably priced handyman ahead of time and eventually overpaying to just get it done and also inexperience as a manager.With that said, you essentially have two options: very cheap properties in less good areas (you're looking at 100k or less--which you might have trouble getting a good lender for)  or trying to do some sort of house hack (e.g. live in flip, live in rent by the room, multifamily) where you budget will be closer to 200k-300k.Personally, I would not look at real estate until you are maxing out your 401k and IRA, but lots of folks have done significantly better with real estate than stocks and would think I'm crazy for suggesting this.

So for example, if I can buy a new construction home for $400,000 (which was negotiated down from $435,000) then hopefully my $80,000 (down payment) was used to buy an asset which will be closer to $500,000 in a few years. 

Only an investment team can provide the crucial local knowledge you need.Moreover, you'll need various resources to find, validate, inspect, renovate, and manage a property.

However, nothing was going to pass building inspection without completely starting over again.

If you want more cash flow deals you may want to look outside of Boston and test out some new markets where you're hitting closer to the range of returns you're looking for. 

After conducting thorough due diligence, including a professional inspection and market analysis, the property was acquired for $72,000.Renovation and TransformationThe renovation aimed to modernize the property, enhance its appeal to potential tenants, and maximize its long-term value.

if you are renting is it inexpensive and therefore creating cashflow out of state can bring you closer to a net zero cost of living?