2 bed 1.5 bath, 875 sq ft, ground floor townhome in coastal South Carolina

[Brice Hall]

Newbie here, considering taking down this deal and want to share with BP community for feedback, in order to hopefully learn more and allow others to learn from my experience. (And I may need backed away from the edge as I am getting to anxious!) I really appreciate all the input you veteran investors provide and hope to eventually give back to up and comers in the future.

I've found a 2 bed 1.5 bath, 875 sq ft, townhome in coastal Carolina approximately 1 mile to the beach for sale by owner. The unit is in an hoa condo community, made up of long term rentals and owner occupied units (approximately 50:50). I would acquire with the hopes to be a long term hold and rent. 

The numbers:

Thus far, agreed to a $45,000 cash sale price. Seller to pay for closing. 

The hoa just redid the outsides of the units within 2 years, and the inside of this unit needs no work.

Tenant currently in place, on a one year lease set to expire April 2015, paying $900 per month 

LL is currently paying for electric and Internet, approximately $65 and $33 per month respectively (per current owner)

$367 for HOA (hoa includes exterior/grounds/pool/patios/cable/water/trash as well as flood and hurricane insurance

I'm told by current owner that taxes are $606 annually, as investment property 

The owner says she is also paying $15 monthly for Renters insurance.

So in short:

45,000 asking price  

Income -

900 total monthly rental income 

Expenses -

65 electric

33 internet

50.5 taxes

367 hoa 

15 renters insurance 

530.5 total monthly expenses (not including mgt fee, vacancies, maintenance, etc) 

10800 annual income

6366 annual expense 

Conclusion/questions/my thoughts:

1) As seen above, this deal fits neither the 50% rule, nor the 2% rule. Is the margin too thin, and doesn't leave enough room for other expenses? Thus not worth the work or losing the money? 

2) what to do if I can't find a property fitting the 50% and 2% rule, particularly in this area? Do condos apply to these rules?

3) Is it ever possible to find a good return with HOAs like this one?

4) regarding the HOA, I also intend to request a copy of bylaws, as well as past expenses. The owner says the HOA was increased in 2012 for a renovation loan that is expected to be paid off in 2017. Anything else pertaining to the HOA that I should find out?

5) The person I'm doing the deal with says the property is actually in her sons name, with her as POA. She's said that she may owe money to an Ohio probate attorney, which is all a little sketch. Will a title search reveal any of this information? How do I go by doing such, or should I be hiring an attorney to do such work? What are associated fees? Will/how does title insurance protect against such circumstances, and what are associated fees?

6) if I decided to move forward with this deal, or a similar one, should I retain a real estate agent as a buyers agent? Or should I have the same attorney from above draft a contract? 

7) are there any other obvious things I'm leaving out, looking over, or missing altogether? 

Thank you all in advance for your feedback!