Regardless of the market these investments have to pay for themselves with rent coming in to cover all expenses, build up reserves and give you a profit.

Over-leveraging is more of a problem if you don't have the income or reserves to cover the debt service. 

Rob Lee covered it well.

Now, it's September and I really need to get it done because Covered California needs the California Return right away.  

You want to make sure that when you buy the property, the rent you will receive will cover all your costs (mortgage, T&I, maintenance, capex, vacancy, etc..).

@Tim Hocker  Keep in mind that your HELOC may very well be an interest-only loan  - so make sure your monthly payment is covering the actual debt and not just an interest payment. 

You will need to supplement your tennat $2500 rent out of pocket to cover the expenses on this property. 

So the only question is, does the Market Rent for that location and Type of Unit cover the HOA, plus Debt Service, plus whatever other Expenses need to be paid..Because if it doesn't, the Landlord is in for a world of hurt!.

Broad brushes paint pretty abstract pictures. 

@Yogesh Kumar this is why you ALWAYS take plenty of video and pictures when you move into and out of a rental property.