Did you mean 50K, that would sound more feasible.

There are complexities around that tipping point relating to continued accredited status and what has to happen if the investor loses their status due to a loss of assets, a drop in income or increased debt. 3) The strongest certification as to the appropriateness of the investment will always be one from an estate or financial planning attorney.

@Mark Updegraff Here is the cashflow analysis that i got form the agent.Price- 23500Potential Rental Income-7800Real Estate Taxes-1294Property Insurance-305Water-142Vacancy and credit losses-390Cash flow before tax-5669Tax liability(savings) at 36% - 2041Cash flow before tax-3628According to the agent, it has a 5+ year tenant lease and the roof is 2 months old.

Then make sure you have adequate reserves to cover all costs associated with this scenario (loan payments, repairs or deductible in case of insurable damage, losses due to covering temporary living cost for tenant if needed, etc) and maintain that amount in a semi-liquid account.

Is this feasible?

If it rents right away then the loss of "vacancy expense" stays in my pocket!

Meaning, in my city, prices have moved forward so aggressively that they have made up for all of the 2008-2010 losses, and there is still somewhat low inventory.

Insurance will defend you against claims and pay for a loss where you are liable.

(D)That the Tenant/Buyer is hereby notified to obtain renter's insurance to cover loss on his/her personal belongings located in the "premises" or on the grounds where"premises" is situated.6)COVENANTS OF LANDLORD/SELLER: The landlord/seller hereby covenants and agrees as follows:(A)That the Tenant/Buyer shall peaceably and quietly hold, occupy, use and enjoy the property, without any let, hindrance or molestation by Landlord/Seller or any person associated therewith.7)BREACH BY TENANT/BUYER: If the buyer shall fail to keep and perform any of the covenants, agreements, or provisions of this Lease/Option, or if the Tenant/Buyer shall ever abandon or vacate the property, it shall be lawful for the Landlord/Seller to enter into saidproperty and again have, repossess, and enjoy the same as if the Lease/Option had not been made, and thereupon this Lease/Option and everything herein contained on the part of the Landlord/Seller, to be done and performed shall cease, determine and be utterly void, except as set forth in paragraph (8), below.

Yeah, you bought at the peak so you wouldn't have made up the loss in value yet, but it is coming back.