Are you adding capital expenditures in to your expenses?

The P&L for 2016 shows maintenance expenditure was 11% and NOI was about $45K.

Get a copy of the budget and ask about any upcoming assessments or major capital expenditures before purchasing a condo (new roof, paving, replacing windows/doors, painting the complex, etc.). 

Many investors also add a line for capital expenditures of around 10%.

Your buyer should be prepared to make major capital expenditures should a new roof or similar be required, since there are no funds in reserve. 

Since I am interested in long term buy and hold, I feel in 20 years or so, there will inevitably be cap expenditures and if I don't obtain a property that meets 1%, I may not be able to pay all the expenses in the future. 

One thought I have is that you account for 10% for repairs but I would also strongly suggest that you account for 10% for capital expenditures.

I'm no idiot and I completely understand how to value commercial properties including capital expenditures that have to be factored in at the time of purchase.

You'll also want to allow for a higher than normal capital expenditure reserve due to the older building components (unless you do major rehab up front).

Or just save ALL your so-called Cash flow on the single family rental and expect to spend it on the Capital Expenditures that WILL come up.