It is not unusual for someone in that position to be renting an apartment for $1,000 per month which, accounting for the increased salary by living in the bay area less opportunity cost of buying vs renting in ATL, is still a net win for that individual in their stage of their life. They key here is that this person can buy the so-called $40K house after 1-2 years of saving and living here, where as you will still have a mortgage.