The basic fact is you're tying up $185,000 of capital in a down payment that doesn't achieve a very sizable return until around year 6 or 7, and that's ignoring any economic down turns. 

We'll see if that goes anywhere.My back up plan is the same as my primary plan: keep buying property in markets that have a diverse economic base, in an underserved market (i.e. upper end of low income/bottom end of middle income rentals, small commercial properties), for around 70%-80% of what I could sell it for today, and using the 2% rule of rent to purchase price ratio to ensure there is plenty of cash flow where I can handle vacancies, maintenance, capital expenditures, and still cash flow positive.Cars crash far more often than markets, but you still drive, right?

Surround yourself with the absolute best subject matter experts you can find while you captain the ship.  

Do you know any other real estate experts in your home town that might know the neighborhood. 

Been doing it for 15 years and made plenty of mistakes along the way, but the cash flow keeps me going.For appreciation, look for units that have problems that can be fixed economically. 

More info here (note: I'm not sure if this is the current set of guidelines nor do I claim to be a mortgage expert) https://www.hud.gov/sites/docu...It might be a good idea to call some lenders and provide a "hypothetical" scenario of this in order to feel it out before you commit to anything.

Pick one to two areas of real estate investing that fit and interest you and become experts in those areas. 

You may be thinking more of Tacoma or something north of Seattle where it is a bit more economical but even still the property taxes out there are killer and with state income tax I would suggest the Orlando market.

I really don't care if the property is in El Cerrito, Hayward, Danville, Antioch, etc. as those are all within a radius of me, the key is the economics.

It wouldn't hurt to get tied in with a local area expert or Realtor that has their pulse on things.I hope some of those insights might help.Trevor :)