The problem is that the $400K house will not rent for $2000 in SD. $1300 maybe, but not $2000, so the differnece between the rent and mortgage, tax and insurance is about $1600 a month. Invest the difference wisely, in the long run, it beats the real estate.
The 15% looks good on the first year, but after paying your mortgage down, the leverage is lower and the percentage will not look so good after 15 years.
