Buy a condo?

[John Dalton]

Looking at a couple of condos. They are 3/2 units in a 3 and 4 story garden apartment-like buildings built in 2002. Low income for sure. $40,000 each unit. One has a Section 8 tenant paying $850 and the other will rent for around $800. Both are turnkey and ready to rent. HOA fees are $135 per month. I've read the covenants of the HOA and there is no limitation on owners renting units. Couple of thoughts that I wanted some input on:
1. The HOA maintains the buildings exteriors and grounds. They are currently in good shape. Does that lower my cap ex, realizing the the $135/mo is part of the cap ex?
2. The ARV is essentially what I'm paying for the condos. There are a few foreclosures in the complex and there are several investors buying and renting. In 2004 they were selling for $160,000 but there is no way they will get that anytime soon and maybe never. I usually by my rentals using the 70% rule. Should I stick to my rule or go for the cash flow?