Assuming you use financial wisdom and insure your income more than covers your leverage not using it is financially stunted.

.$450K purchase price, 25% down...30 year fixed rate mortgage at 5% on $337,500 is $1,812 per month...So if you have zero vacancy you'll break-even on the mortgage...And then burn money on maintenance, cap-ex (likely very limited), any vacancy, property taxes, insurance, etc.Consequently, you really, really, REALLY need that home price to go up. 

Its why you have reserves, to fix the unexpected.Now if the damage isn't sub $500 and I misread it, and its going to be a lot more, file with insurance and let them sort it out.

You should determine the monthly cost for property taxes, insurance, repairs/maint, capex & maybe vacancy.

If you have a fixed rate amortizing loan, your mortgage payment stays the same from year to year, but property taxes and property insurance premiums tend to increase. 

Hello everyone, I currently have 6 properties all in Maine and all insured through Allstate. 5 are landlord policies (3 unit, 4 unit, 3 unit, sfh and 3 unit) and one is home owner (4 unit).

The insurance company put tenants up in a hotel.

@Ryan Keenan Lenders will generally add mortgage, interest, insurance, property taxes and depreciation back into your gross income when comparing it to your federal taxes and total PITI. 

@Omar Khan ok I think I understand... so FHA always pay mortgage insurance premium unless you refinance.

However it is an investment that may require you to be more hands on to insure the decisions made affect your return in a positive way .