The current rent is low for the market so there is a potential to increase with total of $300 plus the garage is not rented at the moment which is an extra $150 .I will appreciate any opinion or thoughts!

If your goal/strategy is to build a nice nest egg for retirement and not replace your current income (not knowing where you are in life), then netting 5% while padding your future isn't that bad of a deal, especially since there are ways you might be able to increase that 5% through property and operational improvements.

Sounds like you could increase your cashflow by 50%.

Some risks I saw come to reality: increasing condo fee, board threatening to pass rental restrictions on units, including on existing landlords/owners.

I also include utilities in the rent so adding a second person increases the utility usage and costs me another $30 or more a month.

If its in a good neighborhood it might increase its value on a long term basis. 

Alone with increasing the number of rentals I also have got in better neighborhoods so better rents.

Take that seriously to increase your chance of success.  

Use seller financing to hold the note to increase your profits, not sell the note to lower your profits.IRR would be the best way to calculate your ROI.

If this becomes a long term tenant, you just established/allowed 2 things to happen:1 - You just established a lower rate as a starting point, with all rent increases to them coming off this amount.