$40k REO Condo - Originally 130k. Buy or Not Buy?

[Sunil Kumar]

In a predicament. foreclosed loft sold for 130k in 2004, now an REO. bank wants 80k.

Taxes: 260+/mo.
Dues: 230+/mo.
All in all fixed cost to own the unit: $622

Will rent for $800 easily. $178/mo cash flow or $2136/year.

I will make 5%+ on my money if I offered a 35k cash deal on it. Bank won't finance such a low amount. They want to offload.

What to do? Would you buy it all cash?

Would you finance it instead and settle for a lower monthly cash flow but have the tenant pay down your mortgage over time?

What's the best route?