Therefore, exploring alternative properties might be a prudent move, as it could lead to options that better align with your investment objectives and budgetary limitations.Consulting with a financial advisor or a real estate investment consultant can provide you with tailored advice, considering your financial situation, investment goals, and nuances of the local real estate market.

It totally gave me the confidence to run the numbers and buy my first building for slightly over the asking price (over the wife's objections).

It's long but worth the knowledge so we can make objective decisions and not emotional ones.Understanding the Real Drivers of House Affordability by Oxford Economics

Depends on what your objectives are. 

The objective is to spend a limited amount of funds making the unit better than 80-90% in the neighborhood.

We bought as a second home so didn't really go into it with the right objectiveness for buying a STR, but only had a few months cash flow positive while we owned it.I think if your focus is STR, looking between Summit and downtown would have better year round appeal to renters.

An example from this past Monday, February 8th:Folsom18 new Active listings13 new Pending listings - 11 had multiple offers8 new Sold listings 31 total Active listings - 6 more than the previous MondayEl Dorado Hills22 new Active listings20 new Pending listings - 13 had multiple offers7 new Sold listings 65 total Active listings - 3 more than the previous MondayFor reference, these numbers are less than half the inventory that there was weekly in Q3 of 2020When people discuss Folsom, El Dorado Hills, and Elk Grove I like to bring in census data so that the discussion can move from largely subjective to objective.

@Christopher Boon In an effort to deliver free and objective info regarding real estate tax and legal topics, recently launched an education portal.

If price is an object, I would consider something like househacking a small multi-family property for your first investment; understanding that may change your lifestyle and you may not want to sign up for that. 

One highly effective approach to achieving these objectives is by engaging the services of an experienced property manager.