@Shakil AhmedI would avoid HOA's like the plague, especially when in certain states as you have pointed out Florida, which has no cap. 

While it would be nice to sell without having to worry about cap gains at that time I'm looking for cash flow in my portfolio and with the renos this property should provide years of low maintenance rental income and a nice bit of equity we can draw out for future investment.  

If I apply the 1% rule, the current rental value is below by about $500, however, cap rate is calculated at 6% and CoC at 3%.

I know an investor recently purchased 4 props, 3 SF, all with 10% NET caps and a 7 unit with 15% NET.

The vale of depreciation on property as well as business loss are capped if you have high W2.  

Gross rents are 4550 so cash flow is roughly $2100. ( yes I know I need to factor in cap ex.

Quick close leveraging a 1st lien against OTHER real estate you on either a cash out refinance, or, if you have equity, you could potentially obtain a 2nd lien against cash flowing real estate usually capped to a max 75% CLTV (1st + 2nd liens can't exceed 75% LTV combined) (5-30 days)4.

For example, in Florida, there's no cap on how much HOA fees can increase annually.

If you are stuck, not knowing where to turn, please feel free to reach out, All the best BTW you want to learn " terminology  ASK, Purchase priceARV, After Repair ValueContingencies, what you want to do/happen before you close, its you're out if need beSOW, Scope of work, details of your repairsCap Rate, your % of income, either NET cap, or gross.

I've done the math and if I go into a property with a 4% cap keeping the same equity/debt ratio, I think I can cashflow pretty well.My question is:  is this advisable?