High end condo opportunity

[Michael Andrews]

Looking to see if I calculated this correctly and if there is a good reason to continue looking at this property with what appears to be dismal cash flow.  

It's a high end condominium duplex built in 2008 listed at $329,000 with a fair market value of $308,200 and yearly taxes of $6951 (OUCH).  Assuming I get it for the fair market value with 20% down and continue with the leases that are both currently $1275 per month, my cashflow spreadsheet calculator shows almost zero or negative cashflow. 

My spreadsheet calculates expenses at $714 per month based on the monthly rents of $2550:

Property Management	$153.00	6%
Savings for repairs	$178.50	7%
Vacancy	$127.50	5%
CapEx	$255.00	10%

PITI is estimated at $1918. Total expense are $2632.42, which is -$82 per month cashflow. If I up the downpayment to 30% it produces a measly $75 per month in cashflow. Not sure if this property can support a higher rent or not, but that might be an option.

To me this looks like a crap deal, but I'm just starting out and I don't know if this is a long term investment worth pursuing.