Help me value this property? Too good to be true?

[Justin Moon]

I have a realtor that I have worked with in the past that sent me an email about a rental that is up for grabs. I've run preliminary numbers, and this property seems too good to be true. It's a multi unit condominium that was built in 1971. This is a standard sale, and not a foreclosure

Setup: 2 br/2 bath, approximately 1200 sqft

List Price: $44,300

Appraisal value: $23,000

Cash flow: currently have a tenant until September 2014 @ $750/mo

Property tax: $700/year

Insurance: maybe $600/year?

HOA: $3096/mo. Includes outside the walls insurance, gate, water/sewage, grounds.

Occupancy: 100% occupancy

Mortgage: $168/mo based on $40,000 price and $8,000 down.

Can I lose out here? Given the price, it isn't in necessarily the best area but it isn't the nicest either. I'm running a lot of different valuations and cash flow calculations and the numbers look fantastic. There is a problem though....

THE PROBLEM: Or at least a problem to me.....If this property looks this good on paper, then why is the seller trying the move the property? On the flip side of this coin, this property has been on the market for approximately nine months but to be fair, there are some reasons why. The current owner is an investor from out of state and had to put in about $3,000 for renovations because the previous tenant trashed the place. In August, a buyer put in an offer and it was accepted, but backed out.

Considering everything in this post, what is going on here?