Thanks for the replies.
noppenbd:
True, I will be very undiversified, but the area I would buy in would be an upscale area that has never have negative growth (expensive part of Wash DC) and is in high demand from renters and students that go to expensive schools.
I ask you this though, if I have the two places paid off, get a months rent from the renter then it would seem the biggest risk would be during the period that I am paying off the 2 condos. As soon as I pay them both off (within 1 yr), I could easily and quickly build up a sizeable savings again using both condos rent and my salary.
You are correct though, I did not include property taxes in my estimate, and I did not include 3 months vacancy because the place I'd buy would be in a upscale sought after area with limited housing. I also will include in the rental agreement, that the renter is responsible for the first $250 in repairs, but all the condos I'm looking at are 1 bedroom 600-900 sq ft.
Jim_Ohio:
"In addition, in your case you would lose the 250k you put down."
How would I ever lose the $250K if I own the property outright ? There is no loan.
"Keep in mind if you cannot make a payment the worst case is a property is foreclosed with a ding on your credit score."
Thats why I like the idea of paying for the place completely. No risk of foreclosure ever.
I'm young (just turned 30), so this would be a very aggressive, but if I buy in a very upscale area, that has a steady pool of ppl with money (Ivy League students, etc), I should never have any vacancies and steady cash flow.
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