If you are younger and seeking to rapidly build a cash flowing portfolio, if you are wanting to continue 1031'ing into bigger assets, or if you do not have the cash to take down entire deals without financing, leverage makes a LOT of sense.If you are retired (or rapidly approaching retirement with a level of uncertainty or concern about what your post-retirement income will look like), it could make sense to begin paying off properties so that you reach a point where your expected monthly cash flow will exceed what you need to live comfortably after retiring.

Does the loan work in the high-interest environment?

I just feel more comfortable to start manage nearby homes to get comfortable before we can venture to out of town places.Maybe this way of thinking is not even the best approach to start out the investing.

Would you be comfortable seeing your name in the newspaper headlines claiming you were cheating homeowners out of tens of thousands of dollars? 

They just don’t see enough of these deals to feel comfortable with them.That said, I’ve had more luck with smaller regional banks and credit unions.. especially those that cater to higher-net-worth individuals.

and how much you can afford / would be comfortable with is up to you and your lender.on Idaho - that's exactly what I am talking about, picking a place where you have friends and connections, rather than throwing a dart at the cheapest places in the US. 

Long story short I purchased a home in an overinflated environment for $500k.

I would look at real comps, and if your exit strategy is to flip in a few years, it may be a problem if you paid more than the market will give you.If you're looking to hold and are comfortable with the tenant, then I would consider itGino

What is it that you ask that gives you comfort?

I've found its pretty hard for folks to get comfortable with a purchase out of state if they haven't seen the general areas that they think they'd like to buy in.While I love where your heads at - best thing you can do right now is likely focusing on saving cash, REI education, paying off loans, and enjoying your last year of school!