If you aren’t going to live in the condo, why are you attracted to this particular deal? I think there are many other deals out there that will net you a better return on your down payment. I would be looking to pay 80K or less (depends on area). I would be attracted to places where the investor owned ratio is too high for the Fannie Mae rules. I would look to pay cash. Why compete with FHA 3.5% down?

Condos are risky due to the potential for HOA fiascos and bankruptcies. I would do some careful due diligence before putting my money at risk.

I agree with assuming zero appreciation. Do the math on PITI and rents and assume some downside to rents. Factor in vacancies with turnover. For maintenance, do some research on normal costs and be generous. Now see how the deal pencils out. If it is about break even why would you do all the landlord work for free?

Full disclosure: I am not a landlord but this is how I am approaching my search for my primary residence. I refuse to put myself into financial extremis and will either find a deal that will easily cashflow as a rental or I will not buy.

With all the distress out there, a little determination should lead you to a deal that makes sense.