You have to check with that condo board. Not all condo allow owner to rent out( most of them do), some of them only allow limited number of unit to be rented out.
And at current rent and price to buy plus condo fee, you would lose money.
The following should also be considered when purchasing a CONDO for rent:
(1) Agent fee. Most people will hire an agent for rental business. The agent will do advertisement, credit checking of a potential client, employment verification, rental history verification and showing the place. Usually the agent will charge one month rent for his work.
(2) Vacancy period. After the previous tenant moved out, it usually takes one month for renovation and for showing the condo,
(3) Rental laws. In general, the law protects tenants much more than the landlord. For example, you only allow to increase the rent below inflation rate each year (1.4% in 2008, 1.8% in 2009). You cannot get any deposit other than the last month rent. If the tenants do not pay the rent or has damage on your property, you need to spend $150 to sue them. And after a long wait you win the case, you cannot simply kick them out by yourself, instead, you need to pay another $430 to hire a sheriff, etc. More info can be found at http://www.ltb.gov.on.ca/en/Law/STEL02_111323.html
