@Sean Tippens  The general rule is if something broke due to negligence or deliberate acts by the tenant, then they pay. 

At (only) 1%/m gross return, it's arguable that it's cash flow on average will be negligible, because I don't know that you'd be able to get the 5% interest rate fixed for 30 years - as an investment loan.Is it a multi-family?

This excludes heating, AC, dishwasher, and oven stove units that breaks because of normal use, and not because of negligence of tenant.

That takes your positive cash flow and makes it become negative or negligible and you don't even get appreciation.If you ever consider looking into Eastern Idaho, let me know.

That's the difference between a careful and safe operation and a carefree negligent one.

However, insurance is limited because it only protects you from one type of liability: accidents/negligence.

My tenant has violated the lease several times, had late payments, and has been negligent with the property other times.

If that amount represents you reducing a monthly reporting debt amount, that would add roughly $20k in purchase power when it comes to qualifying for a loan.If you're just reducing your monthly out-of-pocket expenses which aren't reporting to your credit, that amount is somewhat negligible.

My wife worked auditing quite a few for a CPA firm and fraud, negligence and incompetence are not uncommon from HOA. 

Given the condo will be brand new, I assume the maintenance will be negligible for several years.