HELP!! Should I rent my condo and rent a small apartment?

[Janeen Archer]

I have a condo that will cash flow $1100 per month. However to rent a one bedroom apartment would cost me $1500 per month or more. My mortgage with HOA fees is $1050 per month. So part of my cash flow would cover the additional money spent on rent. I will end up with over $600 per month cash flow but I would still be spending $1500 per month on rent does this make sense? There's a rental cap here and I want to make sure I secure a spot before it is full. The hot Seattle market will make it difficult for me to find anything in my price range to buy down the road. Unless I can find something I can split into two units and rent one of those out. What would you do??

[Janeen Archer]

Since this cash flows great even when other expenses are factored in, my community has a rental cap and there's a couple spots open now when there usually are not. I wanted to secure a spot not so that I can continue to rent it. 

I've checked some comps in the area and my price of $2200 is good. I'm a fan of the 1031 exchange too! My mom did 2 1031 exchanges on 2 properties she bought in 1971 and made a ton of money and saved over $350K in taxes and now when I inherit it it's stepped up in basis to today's appraised value!