That can be a draw back if the market is on a mad run up tho.Also, I would always have enough in a heloc to cover your 401k loan in the event of job loss or if you quit your job. 

If the rental income from your condo can comfortably cover your mortgage and leave you a little profit, moving out might make sense.

Where another issue arrises is I recently quit my job after becoming pregnant as they would not cover my maternity while overseas, my husband is employed however he works for a UK company and is British so would be unlikely to help us with the situation in the US.

Covering my bases!

We are planning to hold it for 5 years and bought a rate cap to cover the entire hold period. 

What I'm gathering from these responses is not necessarily an encouragement to sell and that instead to take precautions to decrease the fire risk and ensure that insurance is covering things like wind.

There are short-term rental management companies that can help with that.One that I work with in Michigan covers the entire state and can advise on local short-term rental regulations or regulations that may be on the way, they can give you an analysis of the demand for short-term rentals in that area, nightly rates in that area, monthly occupancy percentage, and projected monthly income.They also let you choose the level of service you would like from them from full service to minimal.To your success!

Also note that my company will possibly either cover closing costs if we sell or provide property management for two years if we rent.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

There will always be people with money who want a second home in Colorado who are fine as long as their mortgage is covered.