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You have only 5,000 down, are you using money from an existing line of credit to come up with the 195K?

If not, then you have to either put another $45,000 down or you'll have CHMC fees in there as well. EDIT: And then you have to either get a mortgage, or a line of credit.

If you are going to hold for 3-4 months your cost of interest is going to be $3-4000, not $2000.

So that brings the profit down to $6500 to $5500.

The big issue is you're assuming a 4% gain per month. That was last year, I would NOT count on that repeating. I suspect that we might be at 30-40% increase by year's end and you're in prime buying season then, but you have to ask yourself what's the worst case scenario. What if the price only went up $10,000 in that time, you're down to making $2-3000, plus all the time. That's VERY thin and if for some reason it takes an extra few months to sell you've eaten your profit totally and are now in a loss position.

What area is this condo in? How big, how many bedrooms? If the selling part doesn't pan out, renting it would be a good backup plan, depending on what rent you could get and what the monthly payments are.