Live in new home while it appreciates for 10 years until I get a faculty housing spot, sell private market house, put proceeds (minus downpayment) in bank for retirement (I estimate this will be 1.3 mil before capital gains and real estate fees based on 7% growth in a very desirable Southern California location), and take out new loan for lower cost faculty housing.

I financed this deal through a private lender, allowing me flexibility and faster access to funds compared to traditional financing.

Virtually every loan we make has a private/hard money lender behind us, in second position.

You don't give any indication of what you can afford, so it's hard to give you much more advice than that.When asking for directions, it helps to know where you are at and what mode of transportation you are using (foot, bicycle, Ford F-350, Porsche 911, etc.), and where you want to end up.

And I don't feel like I'm "missing out" on anything, because (a) I'm still close to BK and NYC by car or public transport and (b) there are plenty of things to do and places to eat and drink across the river. 

That is why large private equity firms and buying up parks all over the country... they have great cash flow and don't require a lot of 'management'. 

This property was financed by private money.

I have been investing in real estate in my local market for 10+ years (flips, private lending, rentals).

Often times even where utilities are separate or in a single family there are utilities that are provided by the municipality rather than a private company.

Holy crap Brie that is a horrid trampling of private property rights...