1st investment $64k cash; $13 cashflow; 0.24% cash on cash ROI???

[Melissa U.]

Basically want to know if we should buy high down payment, low cashflow property in a familiar market vs buying low down payment, higher cashflow in an unfamiliar market

New to investing, looking to buy condo in desirable neighborhood, close to good schools and near military base. Property is close to where we live.

• Rent $1850 - $2000/ month
• HOA $414/month - HOA is a deal killer for all properties in this area (estimated increase at 3% a year)
• Remodeled kitchen/bath 2017 
• No tenants but move in ready
• 25% down to make positive cashflow on $240k purchase price

According to everything I've read the cashflow and cash on cash ROI is not good but the reason we want to buy is because:

• familiar with the area/desirable area/neighborhood
• stable market
• location convenient to us
• lack of new builds in area
• in for a 20 year time horizon

Basically a low risk but low return buy - but for a first investment should we take this route or look at a better return with a higher risk and more unknowns?? Appreciate any advice on this....

PS - There are no properties within a two hour driving distance that give $100 cashflow with 10-12% cash on cash ROI for this price range/buy and hold that we've found so far.