For a 6% loan, 20% down, you have 240K financed.
Ignoring principal payments, the monthly interest is $1200.
1% HOA = 3000 per year = $250 / month
1% maintenance = $250/month
Assume Insurance is ~ 100/month
Property Tax = $300/month.
I figured Property Tax at 1.25% = $300/mnth. I included it but didn’t list it. Monthly carrying costs before tax benefit is ~$2000 – $2100 give or take assuming interest only at 6%. Add $200 if doing a traditional 30yr loan.
So he’s running short about $600 or $700 month. That’s $7200-$8400/yr. depreciations is 1/27.5ths of the price or just short of $11,000 generating a tax loss of ~$19,000. At a 40% combined tax rate, you’d get a tax savings on your wage/1040-income of between $7200-$7800/yr. Thus doing an after tax breakeven.
If the condo is in the $250-$270K range with a lower HOA (say $200 or even $150), figure maintenance at $100 since HOA cover major external/common area things, you get closer to the $1500/$1600. There’s a bit of funny money calculations with the HOA maintenance, insurance. HOA is set, but will it rapidly climb? Maintenance and insurance can be spun one way or another.