Advice on renting in HCOL area and buying in MCOL

[Nikhil Sarode]

Currently, I am renting a place in an HCOL area where a decent size home will be close to 1.2m and rental prices for a similar home are approx 3300-3800. I want to invest in real estate but looking at the interest rates and mortagage payments for a home in HCOL(upwards of 7K), I have been thinking of buying a real estate property in MCOL and keep renting in the HCOL area(I do have downpayment of 20% for buying a home in both MCOL/HCOL area).

Based on the price of house in MCOL and rental prices in that area,  based on my calculations, I would only break even for next 2-3 years. 

I do not mind renting a place in a HCOL and investing in MCOL area. I would like know whether breaking even on an investment property is a good investment advice. This would help me build equity without any major investments from my end.