condo's as rentals ($35k, $185 HOA, rents $750)

[Jeff Thompson]

In the market I'm looking at I'm seeing a lot of condos that I'm thinking may make good sense as rentals. . There's quite a few similar to this deal:

35K ready to move in, 8k down at 25%, 27K financed. Zillow estimates $222 for mortgage, taxes and insurance ($122, $23, $78), lets say $250 as it will be a rental. HOA's are $185, so monthly expenses are $435 on the high end. Rent should be $750 a month, so that's $315 a month in cashflow rented with very little concerns of maintenance and repairs.

Using 30% of rent for vacancies and repairs (HOA's cover the building/grounds) we're looking at $525 a month or an expected $90 after expenses per month per unit, or $1080 per year. That's a ROI of 13.5% I believe, not the greatest returns in the world, but a pretty easy way to get it. I especially like that I could add one ever few months as I get the cash for down payments. I imagine the hardest part would be finding a bank willing to go along with my plan...

How does this look to everyone else?