this really puts into perspective why the Bay Area and SF peninsula in particular is in a world of their own and is world class real estate with very few comps..

To put that into perspective, on average, you will need to talk to 15-20 perspective sellers before you get a deal in most markets. 

I will say, from my perspective, it does seem like that is an advertisement from a wholesaler, you will want to ask that, to my knowledge they have to tell you if they own the house or if they're just selling the contract. 

You’ve helped me tweak my perspective going forward.

I’m an agent as well as in investor so maybe I can give you the perspective of both.  

@Tim Woodbridge just to help you understand where the disconnect is, I will share some perspective. 

Do your research on neighborhoodscout, city-data etc. to get a general idea of what’s influencing these RE markets in addition to getting BP folks perspective.

It’s pretty standard from a design perspective, so I can’t imagine it’s a code issue or an ordinance.  

I would agree with that perspective that it is more or less a cash-out refinance if you assume the money will be reinvested. 

If you can buy the condo and you're still comfortable from a cash flow perspective, and you really want the condo (or it makes better sense than renting) go for it.