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[quote=Anonymous]My concern would be the mortgage that you would be left with every month if you only put $50k down.  Let's say you find something awesome at $250k, you are still looking at a $200k mortgage. Even at a low 4% interest rate, you are still looking at over $1k/month mortgage if you include taxes, PMI if neccessary, etc.  How much rent can you realistically get from somewhere that cost $250k?  You have to weigh how much you will make/month from  your renter against how much you are paying/month to your mortgage company.  Will the amount you make be enough to make it worth your while to deal w/the hassles of being a landlord?  I am putting this in terms of month-to-month gains vs long-term gains because I think that the past 5 years have shown that long-term gains re: residential real estate are iffy, especially for amateur investors.

I say this as someone who is renting out one of the two homes that we own.  It seemed like an awesome idea at first, but the amount that we pay in mortgage every month on the house that we are renting is VERY close to the amount that we get in rent.  So months that things break that I need to fix, or there isn't a tenant in there paying rent (luckily this is very rare) or even the months when the tenant pays late...its not the cash cow I had hoped for.  Add to that the hassle of either playing landlord or paying a property management company to handle it for you, and it is honestly just not worth it.  Could save some headache and make more money investing otherwise.[/quote]

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