Too Good to be True?

3600 E 4th St #202, 90814
Price: $282,596
Beds: 2
Baths: 2
Sq. Ft.: 1,320
$/Sq. Ft.: $214
Lot Size: 892 Sq. Ft.
HOA: $259
Year Built: 1985
Purchase Price: $440,413 (this is the bank taking it back--and taking it in the shorts assuming it sells at this price!)
Purchase Date: 5/2009
MLS#: P696443
On Redfin: 3 days
Down Payment: $57,000
Monthly Payment: $1,800
Income Requirement: $81,000
Description: Bank Owned. Prime Belmont Heights Location. This is a large, 1320 sq ft, 2 bed/2 bath remodeled unit with w/d hook-ups in unit. Perfectly located to shopping, dinning and the beach.

"Dinning"?

This REO will likely be gone by the time I post it, but it's worth highlighting because, well, I think it's a good buy at this price. If this was a somewhat stable market and I wasn't convinced this thing would get bid up to well over $300,000, I'd put an offer in TONIGHT.

First, this place is enormous. 1,300+ square feet is palatial compared to most Long Beach apartments.

Second, the building was constructed in the mid-80s--not an easy find in LB where houses from the 20s and apartment buildings from the 50s and 60s are commonplace.

Third, at $214 per square foot, the bank is asking a 2002-equivalent price--making this the cheapest condo in the area by a long shot.

Fourth, this pad, although not that impressive, sure looks a helluva lot nicer than most apartments I've peeped recently.

Fifth, the PITI would likely be within a few hundred bucks of the rental rate, meaning when you factor in the tax benefit it might actually be slightly cheaper to own than rent!

Sixth, this is a desirable neighborhood (location, as it relates to 4th Street and the gas station across the street, not so much, but the area is good and will retain value).

Question: Is this a one-time REO fluke that "doesn't count," or is this a glimpse into the future of Long Beach real estate, where spacious, top-floor, mildly-upgraded condos sell for the low-200s per square foot?