High End Condo Rental - First Possible Deal

[Rob Randle]

Hey guys, been lurking for a bit and decided to make an account.

I am looking at a possible deal on a condo in a higher end neighborhood. Let me say that I have a relationship with the HOA and maintenance association that runs the neighborhood. It is a very stable HOA that has not had any recent assessments and have only raised the HOA fee a max of $10 in recent years. The condo is located in an area that has great schools and is a hot-spot for workers who commute to Philadelphia, PA.

Reasons why I am interested in this property:

1. Renting in a well to do area will decrease vacancy rates. Cheap place to live in high end area.
2. Maintence costs (besides HOA) will be lower because of quality tenants.
2. I can get close to top rent in the area.
3. Tenants will be easier to manage (will be managing myself while working full time job).
4. First deal and I have to put down 20% (FHA out of the question). There is not a SFH that I can buy in this high end area so cheaply.
5. Appreciation is likely, condo sold for 40k more than list price in 2006.

Okay so lets skip past the justification and get into the numbers.

Median Rent - Mortgage&Insurance - Taxes - HOA - Vacancy(5%) - Maintenance(5%)

1300 - 570 - 235 - 205 - 65 - 65 = +160

I know I can get this rent by posting fake ad on CL.

I'm looking for peoples thoughts on this deal.  I feel like I need some verification to go through and put an offer on this property.  I know its not the best deal ever but I think its a solid one with more upside than downside.  Thanks!