First Rental Property - Condo in Charlotte NC

[Austin McCarthy]

Looking to make my first real estate investment (outside of my primary residence). Looking at a 1B/1B condo on the MLS asking price around $40K. My plan would be a conventional 30Y mortgage with 20% down. Expenses (in addition to P&I, insurance and taxes) being 3% vacancy, 5% repairs, 10% cap ex, 7% property management. Current tenant is paying $600/month. HOA is $170 responsible for everything exterior and structural. With these numbers it would cash flow $60/month. With roughly $10K down its only about 7 or 8% CoC but that's with property management which to me makes this a very passive investment. Once there is enough equity in this property/accumulated cash, I would purchase another, and continue to repeat this process. Thoughts?