buy home with 40k or use 40k as a downpayment in another market?

[Robert Hastings]

I have several rental properties.  I usually buy in low income areas.  I have purchased homes for under 30k and have the rented from anywhere between 700-900/month. I am ready to acquire another home but I am wondering if I should try a different strategy.  

I have 40k to utilize on a property and I have considered making a downpayment on a 200k condo.  I'm still planning to rent the property.  

I guess I have to consider how I feel about debt? I think I would cash flow the same after expenses...thoughts?