Getting started is the hard part, and if you haven't been in the game long it will be difficult to find banks willing to continue to finance as you will be highly leveraged without much cushion. 

Est Value 700k  offer 500-600k (obv assuming owner has the equity)I am unsure if we (so cal) are in a bubble; but, the market right now is madness; and I would like to buy but with a bit of a cushion in case values are inflated.

I will have adequate cushion. also, having extra cash on hand would help me,if any good property that comes my way. whats your take on it?

I work a full-time job that pays pretty well, so my plan right now is to save as much as I can - either to have a cushion if I use OPM to fund my first investment, or to pay cash upfront.

This accounting method lets us sleep better at night knowing that we didn't over-pay for that location, and gives us significant cushion incase of a blow up.

We have worked hard to get our little cushion to get started so we don't want to squander it. 

But I never really understood the significance until I learned about lender's cushion!

Once you have that cushion, I would than put about 10%-15% aside regularly, split between a retirement fund and non-retirement fund, such as a mutual fund or a stock fund.After your have accomplished that, than start looking at investing in a business or in real estate.

Should i be asking for lower tham 550k to have a greater built in under market cushion?

Not to mention the purchase price is much lower which would allow my capital to be spread a tad bit further.Thankfully, since I still hold my license, I can use the commissions earned as well to cushion some of the downpayment/reserves needed upon closing.My questions are below and I would appreciate any/all feedback for those who buy/hold affordable housing/section 8:1.)