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scotts
I seriously looked at this when my sale fell through. My conclusion, for my circumstances, was that although it looked like a good plan on the face of it when I looked at the numbers in detail it just became too risky.
Once tax was taken into account the returns weren't great. An empty month or two or a big repair bill would have wiped out any profits and I was also very exposed to property price and interest rate fluctuations.
There's obviously the increased stamp duty with buying a second property and it then becomes much more difficult to sell as you've either got to time it with the tenants moving out (and show it with tenants there) or take a hit on the rental income.
It seemed like a lot of effort and risk was my conclusion but the main thing is to have a very close look at the numbers.