This money gets added onto the back of the loan kind of like a VA funding fee does. 

If the deal goes south and you have next to zero money in the deal, selling a short sale or walking isn't as risky for you since you aren't losing much.

Does it make money?

Quote from @Andy Sabisch: Will it help you sell more or get more money? 

Assuming that your taxes and insurance are around $500 and your mortgage was $1,000 per month - even if you got a rate around 7-7.5% and had no money down I do nto see this property cashflowing.

If you have other money to grow your portfolio even with $107K left in the property then  hold the property. 

This could potentially meet your financial needs by itself as well as provide start up money to do flips or purchase buy and holds

I have been investing in real estate for well over twenty years and can tell you there are a lot of ways to make money in real estate. 

Invest your money in a better deal. 

It cost us more money than we would have liked to have spent, but we were able to put a house on the market that we were proud of.