Most people typically need to analyze 100-500 deals before you close your first one (this will also help you understand what a homerun looks like when you see it), so get started and analyze as many as possible while also living on a friends couch and eating PBJs to save the max amount of capital so you have cash to start buying deals when the right one shows up. 

Your PM probably has leasing fees that will eat into your savings so it will take you 18 months or more before you have a large enough reserve that this property could be considered self-sustaining, meaning you won't have to dig into your pocket to handle a major loss.The scenario I used above is not uncommon.

Most people these days waste all their income on cars , booze ,trinkets and eating out !

@Angela Hill I personally would try to avoid high special assessments on property taxes, they will eat profit for breakfast.  

If you had asked me this question about an Ohio property, I would probably tell you to eat the cost of the $400 because you'll have a very difficult time proving that the tenant caused the damage without the ongoing help of the current owners and the current owners are unlikely to be helpful once this transaction closes. 

Eating into your cashflow. 

If you do decide to purchase something I have bought gift cards to grocery stores...Everyone has to eat. 

The HOA is run by some savvy investors who see the value in keeping costs down; the chefs have to eat their own cooking. 

Maybe the area has a lot of new places to eat out, you can target people who frequently express interest in food.

I have been reluctant to buy condos because of the associated HOA monthly payments that could cost more than $250+ monthly, which can eat up the net profit and hurt the bottom line.