[wincrasher]

Sounds like a sentance instead of a job!

EF funds are not for investing. This is not an emergency.

Also, the down payment requirements and interest rates are higher for investment properties. The profits may be slimmer than your are projecting. Look at investments objectively - it's not just total ROI. Return has to be commensurate with risk. To me, this investment has a high risk and your potential reward needs to be in line with that.

So let's put it another way. Let's suppose you can clear $200 a month profit on this investment - that is an 8% return on your money. That's after the interest you'll pay on the loan, expenses, the tax benefits, etc.
Sounds pretty good - better than CD's certainly, better that mutual funds.

Now what are the risks? Occupancy, destruction, repairs, expense increases (like property taxes), litigation. All these things you may need to hold reserve funds to cover. These come out of your 8% return. Also, not only is your investment ($29,500) at risk, but your liability is not capped at your invested amount. Still sound good? If you can get a CD for 3.5% with no downside risk, is that a better investment? What about some conservative stocks or ETF's that may yeild 5% but you risk the entire principal, but no more than that.

Things to think about.