Investing in an apartment style condo

[Joe Fornasiero]

I'm looking for input on a deal I have found recently. What are some of the pitfalls people have experienced investing in condo units? This would be my first investment property so I'm looking to start small and work my way up. When taking into account the 50% rule I would be right around break even in terms of positive cashflow. I think the property would be paid off within 5 years by taking the surplus and applying it to the principal. I have always invested in stocks and am new to REI. If anyone has any experience with condo rentals I would appreciate any insight!

Property details:

List price: $40,000
2 Bd 1 Ba 733 sq Ft in move in condition
Taxes are $995/yr
Association fees are $175 a month
The same units in the area rent for $805/month

Total costs @ 20% down 30yr fixed

$440/month including P&I, taxes, home ins, and association fees.

$365 monthly cashflow (not taking into account the 50% rule)