Small 1 bedroom condo 400sqft for $90K. Good investment?

[Gus Muller]

Hello everyone! I've done my share of fix and flips (12), and am now looking to get into rentals. I have a lead on an off-market condo in downtown St. Paul, MN prime walking distance to a ton of happening things, concerts, hockey games, etc.

It is very small about 400 sqft, but is on the top floor and I believe is a corner unit. Seller has a tenant in place paying $800/month. I am finding out if tenant pays the HOA of $225/month. Owner has had it for 10 years with zero vacancy. The condo has very minimal upkeep (terrazzo floors, no carpet, no furnace, no a/c, no water heater to deal with. The only 3 appliances are fridge, stove/range dishwasher).

I could put 25% down which would be around $22,500 plus closing costs. And if it makes around $9,600 a year gross, or even $6,900 (if owner pays HOA) I think that would be a decent return? I know there are other factors, but just trying to gauge if I should pursue it more.

Please chime in with thoughts! Thank you!