I'm looking around for houses in my college town to rent to others, and I've found a decent 4-bedroom house with an interest-only 5 year ARM monthly payment (of $1700). Assuming I have enough to cover the down payment, would it be a smart decision financially to go for it?
The renting rates for a room in a house like this are typically between $700 - $800 (the house is very close to campus in a nice neighborhood), meaning at a minimum I will be making around $1100 a month excluding landlord / property fees ($2800 a month total minus the $1700 of interest I'm paying). I know next to nothing about purchasing real estate, but this seems like this could be a decent way to make a little bit of money. If I were planning to sell the house after 5 years, would this be a smart decision?
EDIT: I was being a little unclear I guess. I will be renting the house out for a minimum of $2800 a month (4 bedrooms at $700 a room or more is very common in the town I live in).