I'm having a hard time seeing how the cap rate and long-term value make this a "poor investment".

10% cap ex.

Get a mentor to help you and always Check with an attorney to assure you are in total compliance.I build new for rental primarily for the following reason: 1) I am a builder and have the KSAO's (knowledge, Skills, Abilities, and Other) means necessary to efficiently and effectively build; 2) I buy all my land substantially below market value (usually off-market); 3) any land I buy at market has an immediate value-add component that can quickly make it worth more that what I paid for it; and 4) Cap Ex is generally MUCH less for new construction which means a stronger cash flow up front, but you are always going to need to maintain a suitable Cap Ex account if you are truly going to hold for more than I'd say 7-10 years.... but everybody has their separate opinions and thought process concerning what the "right" amount to designate to Cap Ex is proper..... 

Alternatively, you can itemize on the following:Maintenance/Cap-ExProperty TaxesInsuranceProperty ManagementUtilitiesLandscapingMonthly Income - did you include vacancy in this or no?

Put your thinking cap on and come up with some other things you could do to make this work or at least get out of it.

Expensive cities have lower Cap Rates so your cost to acquire the property will be higher and you're rent roll not much higher proportionately speaking.

Owner pays monthly water and each tenant pays their own separately metered Asking price 320,000Monthly Income:$4,890.00Monthly Expenses:$3,731.69Monthly Cashflow:$1,158.31Pro Forma Cap Rate:9.45%NOI:$30,236.40Total Cash Needed:$96,000.00Cash on Cash ROI:14.48%Purchase Cap Rate:9.45%Purchase Closing Costs:$6,000.00 Estimated Repairs:$10,000.00Total Project Cost:$336,000.00After Repair Value:$320,000.00 Down Payment:$80,000.00Loan Amount:$240,000.00Loan Fees:Amortized Over:25 yearsLoan Interest Rate:4.700%Monthly P&I:$1,361.39 Total Cash Needed By Borrower:$96,000.00Total operating expenses:Mortgage expenses:Vacancy:$342.30Repairs:$244.50CapEx:$342.30Electricity:$350.00Water & Sewer:$400.00Insurance:$200.00Management:$391.20P&I:$1,361.39Property Taxes:$100.00ARV based on Cap Rate:$755,910.00All advice welcome.

I know it's about to be the winter so I am unsure of how often the unit would rent out.I would need to make sure the HOA allows rentals and that there is no rental cap or restrictions.

The FMV of the apartment is based on NOI/cap rate.  

Owner pays monthly water and each tenant pays their own separately meteredAsking price 320,000Monthly Income:$4,890.00Monthly Expenses:$3,731.69Monthly Cashflow:$1,158.31Pro Forma Cap Rate:9.45%NOI:$30,236.40Total Cash Needed:$96,000.00Cash on Cash ROI:14.48%Purchase Cap Rate:9.45% Purchase Closing Costs:$6,000.00 Estimated Repairs:$10,000.00Total Project Cost:$336,000.00After Repair Value:$320,000.00 Down Payment:$80,000.00Loan Amount:$240,000.00Loan Fees:Amortized Over:25 yearsLoan Interest Rate:4.700%Monthly P&I:$1,361.39Total Cash Needed By Borrower:$96,000.00Total operating expenses:Mortgage expenses:Vacancy:$342.30Repairs:$244.50CapEx:$342.30Electricity:$350.00Water & Sewer:$400.00Insurance:$200.00Management:$391.20P&I:$1,361.39Property Taxes:$100.00 ARV based on Cap Rate:$755,910.00All advice welcome.