San Jose, Looks like 5 Cap Rate, Is this better choice?

This is for discussion purpose:

The rents near by is around $2500/month. With HOA 325, Property tax appx $370, other maintenance, mgt appx 10%, I see a cap 5% we can get.

Is this better choice?

two potential red flags:

i) Old townhouse. Any imminent assessment? How is the HOA reserves?
ii) neighborhood isn’t that great. I am not a big fan of 95127. That said prices have been going up there as people are looking for the few remaining low cost places in San Jose

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Townhomes/condos with rental restrictions also sell at a discount. If a Cap rate is unusually high, that might be the case.