Is this idea sound? Beginning rental property

[David Kendall]

I'm in the Northern Virginia Area, and looking at purchasing a 2 bed/2 bath condo. The condo was assessed at 235k and the seller is asking for 200k. realtor.com says the expected appreciation for the neighborhood is 4% and has appreciated 11% since last year.  Condos in the neighborhood tend to be on the low side like 220k, or higher at 300k.

There are very obvious problems with the interior, predominantly that the walls need to be repainted. I'd also like to replace the floors with laminate as the carpet looks... rough.

I'd be paying 20% down, and probably getting a loan in the 4% area. My initial plan is for my girlfriend and I to move in and rent out one of the rooms for 750$ish while putting in the elbow grease to fix the place up. Once the condo is in good condition, I figure the value will rise quite a bit. With HOA Fees, mortgage, principle, and insurance I'd be paying (1,250 - sublease rent) while I lived there, but once I'm out I would ideally like to rent the place for 1800 - maybe more.

1) Is this idea sound?

2) If we move out of the property when it is generating income for us, will that negatively impact our ability to take out a second mortgage on a townhouse or condo despite us grossing additional