Cash-only condo building - red flag or opportunity?

Been looking at this converted hotel building that got turned into condos back in the 90s. The place looks dated but it's in decent shape. Building management mentioned they've got a waitlist for rentals which caught my attention.

Here's the weird part - you can only buy with cash because of some zoning restrictions. No financing allowed whatsoever. Studios are going for around $140k so it's basically all cash investors who then rent the units out.

The numbers actually work pretty well though. You can pull $1400/month on that $140k investment. HOA runs about $450 but covers cable and all utilities. That's significantly better returns than anything else I've seen in the area, including single family homes.

Obviously the major downside is liquidity - your buyer pool is extremely limited when you want to sell. I'm guessing that's exactly why the returns are so much higher.

As someone who's been careful with investments, this feels like it could either be a solid cash flow play or a potential headache down the road. The cash-only requirement definitely limits your options if you need to exit quickly.

Anyone dealt with similar properties? Seems like there's gotta be a catch I'm not seeing here.