My mortgage, utilities (shared), maintenance reserves, and water would be $1,000 per month. 

I'd likely be $100/month positive, depending on level of my reserves.  

@Erica Pelfrey  Make sure you have enough in reserves for an unexpected repair or vacancy. 

This market cap rate is the average of cap rates of recently sold comparable apartments so naturally I expect to pay that cap rate.

Your yearly income must be sufficient to qualify financially for both properties with reserves.  

I'm currently involved in some HoA litigation about improper reserve funds, and I can tell you that this area of law is very muddy and attracts stubborn people. 

Make sure to have reserves for rainy days. 

I've always been naturally frugal and have been a huge proponent of passive income but after months of reading, researching, and listening to the BP podcast, I've built up enough confidence and a tiny bit of knowledge to make it happen. 

Also save up cash to have a decent reserve for your rental business.

A lot of pets are great, which is why I welcome them onto my property - but I do this because I know I reserve the right to screen for those which I determine to be well behaved and safe.