Buying investment property with FHA loans can be a great way to get into real estate investing. But it does come with potential risks. (Negation) One of the biggest risks is that you could end up owing more on the loan than the property is worth if housing prices fall or if the rental market weakens. Another risk is that you may not be able to find renters for your property, meaning that you'll have to pay out-of-pocket to cover mortgage payments! Additionally, if you don't handle repairs and other maintenance properly, it could end up costing you far more than expected.

(Transition phrase) On top of this, when using an FHA loan, there are also limits on how much money you can borrow. This means that buyers may have to put down a hefty amount as a downpayment in order to qualify for the loan. Also keep in mind that because FHA loans require mortgage insurance premiums, your monthly payments will be higher than they would otherwise be with conventional financing options. Lastly, since lenders view FHA loans as slightly riskier investments, interest rates tend to be higher too!

Therefore, before deciding whether or not using an FHA loan is right for you when buying investment property, carefully weigh all of these potential risks and make sure that it's really worth pursuing!