Condo Deal Analysis + Mold?

[Ryan Jones]

Here are the details: $155,000 list price; 2 bed, 1 bath, ~1,000 sq ft. Very well kept and upgraded, owner-occupied since 1994. Similar unit rented recently for $1495 however I would think that rate was a little high had I not been able to view it on Zillow history and going off rental market in ~2 weeks.

$155,000 purchase; 30 year loan 4% interest 25% down. Assume no repairs, total cash: $43,750 with closing costs.

Rent: $1,495

HOA: $285

Insurance: $65

Property Management: $100

Maintenance/Repairs: $50

Property Tax: $159

NOI: $716/month --> $8,598 annual

Mortgage: $555

Cash Flow w/o vacancy: $281/month --> $3,374 (7.7% Cash on Cash)

Cash flow w 8% vacancy: $162/month --> $1,938 (4.4% Cash on Cash) 

Thoughts on this deal?

Also, although the unit itself is upgraded and very nicely kept - it's truly move in ready and looks like 2020s upgrades, we noticed what appears to be mold in the hallway ceiling area. It's dry but I'm pretty sure it was mold. Unless someone looks up they'll miss it and think this condo is amazing. I'm expecting a bidding war and am prepared to offered cash at asking price with flexibility on move out/lease back. This mold concern seems so out of place given how well everything else was! Is this something that we need to make initial offer ignoring and then make sure it's inspected and fully remediated?