What about the HOA?  

Is there an HOA that would have regulations or town ordinances they are violating?  

For things like hoa and insurance, I just plugged in what was on the Redfin calculator. $75 hoa does seem really low, but this condo is not in an A+ neighborhood or anything and they don't have any fancy amenities like a swimming pool, etc.

You want to account for expenses associated with the rental (HOA fees, mgmt fees, etc.) and you also want to take advantage of depreciation. 

My overhead was $178 (P+I) payment, $100 HoA and $120 for self managed escrow (Taxes and Ins).

Vacancy factor, maintenance factor, landscaping (your tenants most likely won't keep up with it), garbage service, CapEx, taxes, insurance and HOA if any.

You also need to know about which "unrecorded liens" in your jurisdiction may stay attached....here that would be hoa debts.  

I currently have a deal in Jersey City that has been under contract for over 6 months due to HOA arrears (which the seller is partially responsible for).  

(The HOA might kill it for me)

.- If there is an HOA, there could be association laws forbidding the rentalOtherwise, denying a person from purchasing real estate could be red-lining and sort of really illegal.... of course the best way to find out is to ask the person who told you.