The real answer to this is, "It Depends."
You live in the same development so you know what the neighborhood is like. If you were looking for a place to rent would you rent there?
What would the purchase of this place do to your cash reserves? What would happen if you were unable to rent it for a month or two.
Do you really want to be a landlord? There are a lot of duties and responsibilities involved. There is more to it than collecting the rent every month. Are you prepared for the phone calls when the water heater starts to leak or the heat doesn't work? What about when the neighbors complain about the noise?
Financing is different on income producing property. You need to talk with a lender before you go any further. Sometimes interest rates are higher. Depending on the lender, there may not be as much flexibility in putting closing costs into the loan. In addition, with the current climate in the financial world, lenders may want more money up front for a down payment than in the past. I repeat, talk with a lender before going any further.
If you should decide to pursue this I have some tips for you that I learned the hard way which I would be happy to share.
REALTORÂ®, Broker, e-PRO,GRI
Hop Bailey Co.
310 Forest Park Blvd
Knoxville, TN 37919
"The Extra Mile Is Never Extra"