if you can in any way swing it DO IT! but you must look at it as a long term thing. The first condo I bought will be paid off before my kids start college and guess whats going to foot the bill for living expenses? Also who said you had to report all of the rent? (you didnt hear that here.) But it needs to break even or come very close to it, hard to do if your looking to buy rental prop. now but if you have owned it for awhile should be possible even if you have to pull some $ out for the down on your new place. Also I have not done and do not suggest ARM's on prop. you plan on keeping for any amount of time. Just my .02