Under Contract - Good deal?

[Andrew Dumais]

Hi everyone,

I'm under contract and need your help deciding if I'm paying too much...

*1 Bed, 1 Bath 725 sq ft condo on 2nd floor (of 3), located in 192 unit condo community. Mostly owner-occupied units.

* Contract Purchase Price: $111,500 w/ 2k toward closing costs. HOA: $284/mo includes Heat + Hot Water.

* Rents: My size units renting for $1,095. Others with smaller sq footage paying $860-900.

My unit was built in 1981. Kitchen is a bit dated (although cabinet doors are painted white). Older AC wall unit. Bathroom also 80's. Narrow shower. Green carpeting throughout. Has been recently painted white on all walls. 3 closets (one walk-in), but no other storage. Covered carport. Close to highway and a city in New England. 

HOA fee includes heat, hot water, trash, sewer. Laundry is coin-op on ground floor at $1.25 per wash/dry.

Am I paying too much at over 8x Gross Rents? Other comps show sales of around $103k for same unit. Is there something I'm missing?

Thanks!

Andrew