How do these numbers sound? Low priced condo

[Jim Truman]

Hello,

I am curious to know your thoughts on an investment. On the surface it sounds great, but we're thinking about passing on it and I want to make sure I'm not crazy. We are new to investing, having just purchased our first property in August, so we definitely weren't planning on buying a second one this soon. But my Realtor found this one and that it might work for us. We are out of state so we are using Property Management. 

2 Bedroom, 1 bath, great storage, 1000 sq feet, could probably get it for $55,000.

It's a 3rd floor unit in a development with maybe 10, apartment style, buildings. 

Unit was remodeled very nicely by current owner (a Realtor/investor.) The unit is beautiful but he didn't put a dishwasher in the kitchen. The older units in the building all have dishwashers. 

The development has a large garage so it comes with 2 parking spaces.

It's in a solid B area and is actually walk-able to a shopping development with Whole Foods. Great universities nearby as well.

HOA is $250/mo but this includes water.

Our Realtor believes we could get $900/mo.

On the surface, this seems great. But we believe, and he agrees, this will probably be a high turnover type of tenant. And although he doesn't think no dishwasher is a concern, we believe the type of tenant that we'd like to attract, that would pay a little premium for such a nicely finished unit, would get annoyed with not having a dishwasher. This will increase turnover. The unit also only has an in-the-wall air conditioner in the family room. I don't know how well these work to cool a whole unit.

The cashflow seems great until I throw in costs for an annual turnover. (Vacancy, cleaning, listing fees, PM's finder fees, etc.) Once these expenses are included, it has an annual cashflow of only 940. A Cash on Cash of 6.8%. This might not be terrible but really doesn't leave any wiggle room in case it doesn't actually rent for 900, HOA goes up, maintenance, etc.

This unit probably won't appreciate all that much either.

Are we missing something here? Hard to believe a beautiful 55k unit that rents for 900 is a bad deal. Our Realtor just picked a unit up in this development so he's confident in the unit as a rental. But, he doesn't have to pay the PM expenses which totally changes the math.

We're thinking maybe wait for another unit in this development that hasn't been remodeled so nicely, with a dishwasher, that we could maybe pick up for 30, and put 10 into painting, new floors, etc, and will still rent in the 800's might be a better option?

Looking forward to your thoughts.

Thanks