Question: appraisal low

[Christopher Fay]

I have a quick question. I am in the process of purchasing my 2nd rental property. It is a foreclosure that was built in 2009. House is in great shape. It was in multi offer so I offered 90k. Based on comps we figured the house was around 110k-115k approx in value. The appraisal came in at 105k. That makes my purchase price about 12% or 13% under value as opposed to 19/20% which is where I want to stay. This means of course if I was to sell the house next year at 105k I wouldn't make a lot on the house. I do not plan on selling it however and my cash flow would be about 325-375 monthly. Question is should I stick with the deal or eat the earnest money to avoid buying the house at a higher value/price disparity than I originally thought?