Does being condo make this a bad deal? What am I not taking into

[Jacoby Atako]

I came across a deal that I ultimately passed on for a couple of reasons, but I want to know if I am overlooking what could have been a strong deal.  

It was a condo, short sell, bank approved price of $105k. Needed some minor repairs, mainly paint and flooring. I budgeted $8k for rehab work. Planned on buying in cash, and the ARV I estimated at $135k.

These condos rent for $1000 a month.  Expenses are:

HOA is $110 a month, Insurance $35, PM 8%, taxes $35, and P&I after refinancing $500 ($100k loan). I also included a fixed cost of $50 a month for repairs, and a 5% vacancy. Water/sewage included in HOA.

Cash flow would be about $145 ($1740 a year) a month and total invested would be $15,500 with loan fees, etc, which is an 11% return, not including principle pay down. 

Ultimately I didn't end up purchasing the condo because: 1. It was a short sale, and I didnt want to tie money up in an offer for a long period of time in case other deals come up. 2. It was a condo, which apparently don't appreciate much in value 

[Brett Goldsmith]

You can get reviewed for a short sale typically without putting any money into escrow. No reason typically to put money into escrow if a short sale is not officially approved with an approval letter to close. I think this often will void point 1.

I probably wouldn't buy this deal as I'm not walking into enough equity or a value add opportunity. Condo's do appreciate in the proper location.

I think you will find something you'll walk into more equity on or with better cash flow.