Probably but it does deter a little.Any way, long answer is sure it seems good on paper, but I don't know of any actual cases unless its indian burial grounds from 2-400 years ago.

If you've not left out any deferred capital expenditures, that's a fantastic setup. $25k for $1350/gross rent?

A list of responsibilities for the PM should be in your agreement - - the more the merrier, as that's a primary reason to use a PM - - off load work & responsibilities.There should also be a list of line items which are considered 'petty cash' expenditures with a fixed dollar limit per incident and you don't question or challenge.Beyond petty cash, expenses need a Purchase Order, itemized, date of completion noted and specifically which person/contractor(s) will supply the service. 

Prabodh Kumar kandala - the structural will last well over a hundred years but maintenance and HOa's can get expensive due to maintenance and capital expendituresThe condo should have a budget and a capital expenditure report and a condo reserve analysis which shows expected life and cost for large expenditures

We drew up a partnership agreement outlining share percentages, roles/responsibilities, clauses in case of death or incapacity, Right of First Refusal in the event that we want to dissolve the partnership, capital call provisions (needing additional funds), written approval from members for expenditures over "X" dollars, etc.

Don't forget about capital expenditures (Cap Ex-replacing worn out items-dishwasher, water heater, etc).  

Though I wouldn't count on appreciation in determining whether or not to buy, you probably have a pretty good chance of having it in the future.The bad: You actually will not have $400/month in cash flow after you account for vacancies (generally 7-12% of rents), mx reserve (generally 10% of rents), and capital expenditures (generally 5% to cover large items like roofs/foundation/sewer/etc.). 

There is a ton of great information on this site about estimating expenses, but here are a few items you'll probably want to account for in addition to the mortgage/financing costs:Property taxesInsuranceVacancy factorRepairsCapital expenditures (major repairs)Property management

We put a new HVAC unit in last year, and the roof was put on in 2014, so I should not have to worry about the larger expenditures for some time.  

He, however, advised to have some reserve (but not in terms of monthly expenditure) in case of emergency.